Oakwood Homes to be Acquired by Clayton Homes for $373 Million

6:06 PM, Nov 25, 2003   |    comments
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Manufactured-homes company Oakwood Homes Corp., which is poised to emerge from bankruptcy protection, agreed to be acquired by Berkshire Hathaway Inc.'s Clayton Homes for about $373 million.

The acquisition will involve an amendment to Oakwood's reorganization plan, now pending before the U.S. Bankruptcy Court for the District of Delaware.

Greensboro-based Oakwood said Tuesday the deal has the support of the company's committee of unsecured creditors.

Although Oakwood was prepared to emerge from Chapter 11 as a stand-alone company, the board and the creditors committee decided that the all-cash Clayton offer was in the best interest of all shareholders, the company said.

The companies expect the transaction to close by March 31.

Oakwood expects to keep most of its employees and operate under the Oakwood name. It will continue producing homes under the Schult, Marlette, Golden West and Crest brands.

All cash at closing will be left with the company.

Clayton Homes was bought by Berkshire Hathaway for $1.7 billion after the Tennessee Supreme Court turned away a shareholder challenge to the acquisition in September. Berkshire, based in Omaha, Neb., is a holding company controlled by billionaire investor Warren Buffett.

In morning trading, shares of Berkshire climbed $510, or 0.6 percent, to $84,000 on the New York Stock Exchange.

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