Hometown America agreed to buy rival Chateau Communities Inc., the largest owner of prefabricated housing developments, for $1 billion, topping an offer from financier Sam Zell.
Chicago-based Hometown, backed by Washington state’s pension fund, will pay $29.25 a share in cash for Chateau. The closely held company also will assume $1.2 billion of Greenwood Village, Colo.-based Chateau’s debt and preferred stock for a total of $2.2 billion, Hometown Chief Financial Officer Tom Coorsh said.
Zell’s Manufactured Home Communities Inc. earlier this month offered to buy most of Chateau for $26 a share.
Shares of Chateau rose $4.52 to $29.68 on the NYSE.