It has been a relatively mild day on the markets, but one cannot help but look at Skyline Corporation (NYSEAMERICAN:SKY), an Elkhart-based company that is trading up 50%.
What Happened?
To no surprise, Skyline Corporation is trading up as much as it is because it announced on Friday, alongside of Champion Enterprises Holdings, that both companies have entered into a definitive agreement, which states the two companies will integrate their operations, with Champion contributing 100% of its operating subsidiaries shares, and Skyline issuing around 47M shares to Champion, who is the parent company of Champion Home Builders.
By working together, Skyline Corp. believes stakeholders will see various benefits, like significant cash flow and annual synergies, as well as increased size and scale. The integrated company will trade on the NYSE America, under the company name Skyline Champion Corporation, and the stock ticker “SKY.”
As of this writing, Skyline Corporation is trading at $19.11, which puts the stock up $6.28, or 48.95%. The stock can be seen moving up and down a few cents but is maintaining a steady incline for the most part.
This isn’t just significant news for the two companies involved, it’s actually pretty monumental for investors as well, as the integration of Skyline and Champion Enterprises marks the creation of the largest publicly traded factory-build housing businesses in the United States.
Skyline Corporation + Champion Enterprises Holdings
Personally, I’m not too surprised that these two companies have entered into a definitive agreement considering both companies are involved in the factory-built housing sector.
For those who don’t know, Skyline Corporation creates, designs, and markets various manufactured housing as well as modular housing for dealers, all of which act independently, while Champion Enterprises works through its subsidiaries to create and sell both modular and manufactured homes.
Featured Image: Depositphotos/© depositedhar
