Cavco Industries Inc (Nasdaq: CVCO) said on Monday it would acquire American Homestar Corporation, the Houston-based maker of Oak Creek Homes, for $190 million in cash to deepen its footprint across Texas and neighboring states.
The deal, expected to close in Cavco’s fiscal Q3 2026 pending regulatory approvals, marks a strategic investment aimed at scaling operations and driving synergies in purchasing, product optimization, and best-practice implementation.
American Homestar, founded in 1971 and led by President and CEO Dwayne Teeter, operates two manufacturing facilities and 19 retail locations. It posted revenue of $194 million and net income of $16.6 million in the 12 months ended May 31, 2025.
“This combination is a perfect cultural fit,” Teeter said. “Our people will be part of a dynamic, growing company well positioned to compete in an ever-changing environment.”
Cavco, which plans to finance the deal entirely from cash on hand, expects the acquisition to be accretive to earnings and cash flow. TN Capital Advisors LLC served as Cavco’s exclusive financial advisor, with legal support from DLA Piper. Jackson Walker LLP advised American Homestar.