Hometown to Buy Chateau

Two owners and operators of manufactured housing communities --Hometown America LLC, Chicago, and Chateau Communities Inc., Greenwood Village, Colo. -- have announced a merger pact under which Hometown will acquire Chateau in a transaction valued at about $2.2 billion.Under the definitive agreement, Hometown will buy all the outstanding common shares and units of Chateau for $29.25 per share (or unit) in cash, a premium of approximately 16% over the closing price on May 28, the companies said. In addition to paying the approximately $1 billion equity value of the roughly 35 million common shares and units, Hometown will also assume Chateau's net debt and preferred stock of approximately $1.2 billion. "Chateau Communities has a high-quality portfolio of properties and offers a strong presence in markets we find attractive," said Rich Cline, Hometown's chief executive officer. Chateau, a real estate investment trust, is the largest owner/operator of MH communities in the United States, and Hometown is one of the largest private owners of such communities and one of the top 10 operators, according to the companies.