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Cavco Industries Inc., the Phoenix-based manufactured housing giant, has inked a deal to acquire Houston-headquartered American Homestar Corp. — also known as Oak Creek Homes — for $190 million in cash, a move that sharply expands its market share in Texas and nearby states.

The Monday announcement said the acquisition, expected to close in Q3 of Cavco’s 2026 fiscal year, includes American Homestar’s two manufacturing plants, 19 retail locations, in-house loan services, and its role as an agent for third-party insurance providers.

A Southern Stronghold in the Making

With 800 employees and $194 million in annual revenue, American Homestar produced 1,676 homes in the year ending May 31. Its net income hit $16.6 million, with adjusted earnings of $17.8 million — numbers that Cavco believes justify not only the price tag, but also the strategic foothold it will gain.

“This acquisition cements Cavco’s presence in Texas and gives us immediate access to an expanded customer base, robust retail network, and experienced team,” the company stated.

More Cash, More Moves

Despite the hefty investment, Cavco assured investors it will retain enough liquidity for “further strategic growth.” The transaction was advised by TN Capital Advisors, with legal representation from DLA Piper — specifically attorneys Kevin Criddle, Steve Autenrieth, Mikaela Colby, and Zachary Silva.

On the seller side, Jackson Walker LLP advised American Homestar.

Neither company responded to requests for further comment by press time. Still, the acquisition is widely seen as a power play that could redefine the affordable housing market across the American South.