Associates First Capital and Fleetwood signed agreement on sale of Fleetwood Credit Corp

Business Wire, April 23, 1996

DALLAS--(BUSINESS WIRE)--April 23, 1996--The following press release was originally issued Monday, April 22, 1996. The West Coast was inadvertently left off the distribution.

Fleetwood Enterprises, Inc., the nation's largest producer of manufactured housing and recreational vehicles, today announced that it has reached an agreement with Associates First Capital Corporation for the sale of Fleetwood's wholly-owned RV finance company, Fleetwood Credit Corp. The agreement is subject to regulatory and corporate approvals.

Under terms of the agreement, The Associates will acquire all of the outstanding stock of Fleetwood Credit for $157 million in cash. As part of the transaction, an operating agreement will be signed to assure long term cooperation between Fleetwood and The Associates and to provide for wholesale and retail financing services to Fleetwood dealers and customers. The companies expect to complete the transaction within 60 days.

The Associates is a diversified finance company that is part of Ford Motor Company's Financial Services Group. It is one of the nation's leading sources of wholesale and retail financing for manufactured housing and currently provides financing for dealers of homes manufactured by Fleetwood. Fleetwood Credit has total assets of approximately $400 million, and services a total receivables portfolio of approximately $1.1 billion, including securitized receivables. It has nine regional offices and serves customers in 49 states.

Keith W. Hughes, chairman and chief executive officer of The Associates, said, "The acquisition will enhance our efforts to align with leading manufacturers in key product markets. Fleetwood is the leader in the manufactured housing and RV industries. We believe there are growing opportunities in these markets to enhance a manufacturer's dealer and retail sales network."

Commenting on the sale, Fleetwood President Glenn Kummer said, "We are pleased that an organization of Associates' stature will continue FCC's efforts in the RV finance business. Fleetwood and Associates have had a very successful relationship for several years involving the financing of Fleetwood manufactured homes, and we look forward to expanding that relationship," Kummer said.

"Through the dedicated efforts of its excellent management and staff, Fleetwood Credit has become one of the leading companies in the RV finance business. We believe the transfer of ownership to Associates will facilitate the credit company's continued growth and enhance FCC's ability to provide a broader range of services to Fleetwood RV dealers. Associates will retain FCC staff with the objective of maintaining the high level of quality service to which Fleetwood retailers have become accustomed," Kummer said.

In addition to providing financing for the sale of manufactured housing, The Associates provides consumer and commercial finance, leasing and related services in the United States and internationally through approximately 1,950 offices. Based in Dallas, it manages assets of more than $41 billion.

CONTACT: The Associates

Fred Stern, 214/541-4042

or

Fleetwood Enterprises, Inc.

Paul Bingham, 909/351-3504 or Lyle Larkin, 909/351-3535