Fleetwood Enterprises Inc. has sold its Trendsetter military housing assets to CMH Manufacturing Inc. for $4.5 million in cash following last week’s bankruptcy court approval of the sale, according to Modular Home Builder.
CMH is a subsidiary of the Clayton Homes family of companies, subsidiaries of Berkshire Hathaway, which also owns Forest River Inc., Elkhart, Ind. Trendsetter manufactures modular barracks for the U.S. military in two adjacent facilities located in Belton, Texas, south of Waco.
Under the terms of the purchase agreement, CMH will enter into new contracts to complete current Trendsetter projects at Fort Sam Houston and Fort Bliss, and for another building at Fort Sam Houston. It is expected that CMH will make conditional job offers to most of the unit’s team members. Fleetwood’s existing bonding obligations on its military business, which Fleetwood backs with letters of credit, will be significantly reduced as a result of the transaction.
With Warren Buffet’s backing and government connections, it won’t be too long before Trendsetter will be building more than military hosing for the government, the magazine speculated. ”Clayton Homes seems to be weathering the storm better than most modular home builders,” the magazine concluded.