PHOENIX, (AP) ¿ Cavco Industries Inc. and the Third Avenue Trust Value Fund said late Wednesday that a bankruptcy court judge has approved its purchase of Fleetwood Enterprises Inc.'s manufactured housing business.
Cavco and Third Avenue Trust agreed to pay $26.6 million for the assets of Fleetwood Enterprises, which has been in Chapter 11 bankruptcy protection since March.
Cavco and its investment partner, Third Avenue Trust, were successful in the bidding process during an August 10 auction sale. The two entities purchased the assets under FH Holding Inc.
Last month, Cavco and Third Avenue Trust said it would pay up to $28.9 million to purchase the assets to add to its base of model, vacation and manufactured homes. Riverside, Calif.-based Fleetwood Enterprises makes recreational vehicles and manufactured homes, and has struggled during the economic downturn.Cavco said the purchase was a long-term, strategic move that would position the company for future growth. Cavco and Third Avenue purchased seven factories that employ about 700 people, an office building, inventory, trade names, contracts, leases and an idled plant. The idled plant, located in Woodland, Calif. was added to the Cavco and Third Avenue's bid during the auction. Fleetwood Enterprises remains under bankruptcy protection and is seeking bidders for the rest of its businesses.