AMERICAN HOMESTAR CORPORATION REACHES AGREEMENT TO ACQUIRE BRILLIANT HOLDING CORPORATION.HOUSTON--(BUSINESS WIRE)--March 10, 1997--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 signed a definitive agreement to purchase Brilliant Holding Corporation. Brilliant produces manufactured homes from three plants in Alabama. The company markets its homes through independent dealers, principally in the deep South, Central South and Southwest regions. In its most recent fiscal year ended December 1996, Brilliant posted revenues of approximately $75 million and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of approximately $2.7 million. The closing is scheduled for June 1, 1997, the beginning of American Homestar's new fiscal year. Consideration for the purchase will be up to 600,000 shares of American Homestar common stock and options, plus the assumption of approximately $8 million in funded debt Funded Debt Long-term debt that matures after more than one year. Notes: This is usually issued as a bond or a long-term note. See also: Bond, Debt, Maturity, Note Funded debt Debt maturing after more than one year. . The transaction is expected to be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. and to be accretive to fiscal 1998 earnings. American Homestar's co-CEOs, Finis F. Teeter and Laurence A. Dawson, Jr., commented, "Brilliant represents another important strategic opportunity for American Homestar. It gives us a much broader manufacturing base in the deep South, where we plan to replicate our core southwestern market strategy, with multiple manufacturing plants and a strong retail distribution network consisting of both Company stores and independent retailers." American Homestar is one of the 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 operates a total of eight manufacturing plants, 49 Company-owned retail centers, and serves over 300 independent retail locations in 24 states. The Company also provides retail financing through its finance affiliate, 21st Century Mortgage, and provides insurance and transportation services to its customers. CONTACT: American Homestar Corp., Houston Craig Reynolds Craig Reynolds can refer to:
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