Cavco Industries has agreed to acquire American Homestar Corporation and its subsidiaries, known as Oak Creek Homes. American Homestar, based in Houston, operates two manufacturing facilities and nineteen retail locations. The company generated $194 million in revenue, with a net income of $16.6 million, for the twelve months ended May 31, 2025, and produced 1,676 homes.
Cavco will purchase American Homestar for $190 million in cash, funded by its existing reserves. The deal is expected to close in the third quarter of fiscal year 2026, pending regulatory approvals.
Key highlights of the acquisition include:
- Expected to boost earnings and cash flow.
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Opportunities for cost savings and efficiency improvements.
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Strengthens Cavco’s presence in the South-Central U.S., a vital manufactured housing market.
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Cavco will retain a strong cash position for future investments.
Advisors: TN Capital Advisors acted as the exclusive financial advisor, and DLA Piper served as the legal advisor to Cavco for the transaction. Jackson Walker, was the legal advisor to American Homestar.
KEY QUOTES:
“Throughout the acquisition process, we developed a tremendous respect for what Buck Teeter, Dwayne Teeter, and the entire American Homestar team have built. For decades, they guided the company through industry downturns and challenges, consistently adapting and ultimately thriving. American Homestar is a leader in our industry because it embodies the Teeters’ values and focus on providing quality homes for deserving families. We at Cavco are grateful for their trust and are excited to join forces in the South Central U.S.”
Bill Boor, Cavco’s President and CEO
“Founded by my father, Buck Teeter, in 1971, American Homestar focused on providing high-quality, affordable housing while also fostering a stable and rewarding work environment for its employees. As we enter this exciting new alliance with Cavco, we know this combination is a perfect cultural fit and that our people will be part of a dynamic, growing company, well positioned to compete in an ever-changing environment. We thank Bill Boor and the entire Cavco team for their interest in American Homestar and their commitment to making this transaction happen.”
Dwayne Teeter, American Homestar’s President and CEO
