Cavalier closing Georgia plant due to "continuing market challenges"
Southern Energy is a mobile home manufacturing unit of Clayton Homes Inc., which is owned by Warren Buffett’s Berkshire Hathaway Inc., is now closing.
Cavalier Homes Inc. said Monday the Federal Trade Commission has cleared the way for its merger with Addison rival Southern Energy Homes and that it plans to close its factory in Millen, Ga.
Southern Energy is paying $2.75-per-share in cash for Cavalier, making the deal worth about $51 million.
Cavalier said the FTC completed its review of the merger with Southern Energy, which is scheduled to be completed today. Cavalier shares will cease trading at the close of business today.
Cavalier said it is closing the Georgia plant because of "continuing market challenges" that have lowered sales volumes of certain manufactured homes. It said 100 workers will be affected.
Southern Energy is a unit of Clayton Homes Inc., which is owned by Warren Buffett’s Berkshire Hathaway Inc.
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