Triad to Buy CIS Financial Services

Cavalier Homes Inc., Addison, Ala., a builder of manufactured homes, is selling its financial services subsidiary, CIS Financial Services Inc., to Triad Financial Services Inc., Jacksonville, Fla. Triad will pay $750,000 in cash for the unit, plus the principal balance of certain outstanding installment contracts; these will be paid to Cavalier as collected by Triad within 180 days of the deal closing. CIS purchases retail installment contracts from the dealers that sell Cavalier's manufactured homes. It also periodically resells the majority of these contracts. For the third quarter of 2008, Cavalier lost $168,000, with the financial services segment reporting an operating loss of $22,000. For 2007, Triad had a loan volume in excess of $270 million. This deal is expected to close on or before March 1, 2009. Cavalier has also hired Avondale Partners as its financial advisor as it evaluates strategic alternatives.