Oakwood Homes to be acquired by Clayton Homes for $373 million

By Carlise Newman

Chicago, Nov. 25 - Oakwood Homes Corp. is to be acquired by Clayton Homes Inc., a subsidiary of Berkshire Hathaway Inc., for $373 million.

The sale will be implemented through an amendment to Oakwood's reorganization plan. All cash at closing will be left with the company.

The purchase is subject to the approval of the amended plan by the company's creditors and the bankruptcy court. The transaction is expected to close by March 31, 2004.

The Greensboro, N.C.-based home builder said it has been informed that, subject to the extension of post-petition financing commitments, the sale has the support of the Oakwood's official committee of unsecured creditors.

"Although we were poised to emerge from Chapter 11 as a standalone company, after considering Clayton's offer, the board and the creditor's committee decided that the cash recovery provided by the Clayton offer was in the best interest of the financial stakeholders. We eagerly anticipate our association with the Berkshire Hathaway family of companies," said Myles Standish, chairman and chief executive officer of Oakwood, in a press release.

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