AMERICAN HOMESTAR COMPLETES ACQUISITION OF GUERDON HOMES; RECEIVES $25 MILLION CREDIT FACILITY.HOUSTON--(BUSINESS WIRE)--Sept. 27, 1996--American Homestar Corporation (Nasdaq/NM:HSTR HSTR Harry S Truman National Historic Site (US National Park Service) HSTR High Speed Token Ring ) today announced that it has completed the acquisition of Guerdon guer·don n. A reward; recompense. tr.v. guer·doned, guer·don·ing, guer·dons To reward. [Middle English, from Old French, from Medieval Latin Homes, Inc. The Company also announced that it has established a $25 million credit facility through Bank One, Texas N.A. These funds, together with the capital raised in the March 1996 common stock offering, will be used to support the Company's internal growth as well as the Guerdon acquisition and the recently completed acquisitions of Heartland Homes, Inc. and Manu-Fac Homes, Inc. Guerdon produces manufactured homes in four facilities located in Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , Idaho, Nebraska and Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by , and sells its homes through approximately 150 independent retailers located primarily in the Pacific Northwest, Rocky Mountain, and South-Central regions. Guerdon has current annual sales of approximately $100 million. The acquisition will be accounted for using the purchase method, and is expected to be accretive to American Homestar's earnings per share. American Homestar's co-chief executive officers, Finis F. Teeter and Laurence A. Dawson, Jr., said, "With the Guerdon, Heartland and Manu-Fac acquisitions complete, we are now operating in five major regions of the country with a total of eight manufacturing plants, forty-seven Company-owned retail centers, and serving over 300 independent retail locations in twenty-four states. From this established manufacturing presence in several new regional markets, we plan to solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. and expand our retail distribution network and benefit from the increased volume opportunities for our installment finance operation, 21st Century Mortgage, and our insurance subsidiaries. We now have a much larger and more geographically diverse base to support our growth plan for several years to come." American Homestar is one of the nation's leading vertically integrated manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected companies. The Company designs, produces and retails manufactured homes, and provides installment financing, insurance and transportation services to its customers. CONTACT: American Homestar Corp. Craig Reynolds Craig Reynolds can refer to:
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