Saturday, October 4, 2014

Cavco and Skyline Begin Duking it Out

Skyline Corporation today issued the following statement regarding its ongoing efforts to evaluate strategic initiatives and to rebut certain statements contained in the Sept. 26, release issued by Cavco Industries, Inc. (‘Cavco’) and Cavco’s letter dated Sept. 22:

The Skyline Board of Directors and management team are committed to act in the best interests of the company and our shareholders. In this regard, Skyline’s Board of Directors regularly considers initiatives to help optimize shareholder value over the long term.

Our board has established a special committee tasked to evaluate strategic initiatives and make recommendations to the full board. As part of its work, that committee, with input from our management team and advisors, plans to thoroughly evaluate all potential strategic proposals and other initiatives to further improve operations and strengthen our capitalization.

We are disappointed and find it counterproductive that Cavco issued its press release and published its letter. Contrary to the statements set forth in the release, the first time our board received a proposal with any semblance of specificity from Cavco was Sept. 22. 

While the Board believes Cavco’s Sept. 22 letter significantly undervalues Skyline’s stock, the special committee and the Board will thoroughly review Cavco’s proposals and respond in due course.

Upon receiving Cavco’s letter, the board promptly advised Cavco that it needed more time to consider the proposals. Following this communication, Cavco chose to publish its letter just four days after delivering the letter to Skyline, and on the same day that Skyline had previously announced it signed a letter of interest for Evergreen Recreational Vehicles, LLC to acquire substantially all of the assets of the company’s Recreational Vehicle Division.

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