DOW JONES NEWSWIRES
Cavalier Homes Inc. (CAV) expects its $48.4 million sale to a
rival modular-home maker owned by Berkshire Hathaway Inc. (BRKA) to
close Tuesday, and the company said it would eliminate 100 jobs
with the closure of its plant in Millen, Ga.
The company, which agreed to be acquired by Clayton Homes' (CMH)
Southern Energy in June, said the plant closure was due to
continuing market challenges that have resulted in lower volume in
the company's core home manufacturing business.
Cavalier hasn't yet determined the extent of possible
impairments, the company said Monday.
The maker of manufactured single- and multisection homes had
been locked in a battle with a group of shareholders that together
owned about 9.6% of the company. The group had written to
Cavalier's shareholders and said the company's operating
performance had suffered since well before the financial and
housing crisis began.
Shares were down a penny to $2.74 in recent trading. The stock
has more than doubled this year, with shares rising since early
June.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com