Manufactured homebuilder Clayton Properties acquires Mungo Homes
Clayton Properties Group, a builder specializing in prefabricated modular and manufactured homes, acquired Mungo Homes in a move to bolster the scale of its site-built housing.
Financial terms of the deal were not disclosed. Manufactured housing accounts for nearly 10% of housing starts in the U.S. and fills an important void in home pricing. The number of prefabricated homes nearly doubled in 2017 from the bottomed-out market of 2009. While Clayton is a leader in manufactured housing, the deal will help expand their on-site built housing, bringing a seasoned builder into their fold.
"Mungo Homes is a natural fit for our distinguished group of homebuilders," Clayton Home Building Group President Keith Holdbrooks said in a press release. "Their pillars of success stem from a longevity in the homebuilding industry that is over 60 years old. Mungo's tenure in the industry is paramount, and we look forward to coupling this with the talents of our other builders to pursue innovation in housing together."
Mungo builds in housing markets across North Carolina, South Carolina, Georgia and Alabama, selling over 1,800 homes in 2017 and an expected 1,900 in 2018. The company was named America's Best Builder by Builder Magazine in 2012.
"It creates the highest level of opportunity for our company as a whole while allowing us to retain our culture and corporate identity," said CEO Steven Mungo.
With this deal, Clayton has acquired a total of eight companies, including three this year. The addition of Mungo puts Clayton on pace to build over 4,200 homes by the end of 2018.
Clayton is a portfolio company of Berkshire Hathaway and ranked No. 29 on the 2018 Builder Magazine's Builder 100 list.