Clayton Homes

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Clayton Homes
Subsidiary of Berkshire Hathaway
Founded 1956
Founder Jim Clayton
Headquarters Maryville, Tennessee, U.S., United States
Key people
Kevin T. Clayton (President & CEO)

Clayton Homes is the United States' largest builder of manufactured housing and modular homes.[1][2] Clayton Homes is a component company of Warren Buffett's Berkshire Hathaway.[3]

Clayton's corporate headquarters are in Maryville, Tennessee.[4] Its subsidiaries include Vanderbilt Mortgage, 21st Mortgage, the nation's largest manufactured home lender,[5] and insurance company HomeFirst Agency.[citation needed]

History[edit]

Clayton Homes was founded in 1956[6] by Jim Clayton.[7] In 1974, Clayton Homes established its own mortgage company, and added a manufacturing division in 1975.[8] The company went public in 1983, trading on the New York Stock Exchange.[9][8] Each year from 1989 through 1992, Clayton Homes was named on the Forbes list of the best small companies in America.[10] Kevin Clayton, Jim Clayton's son, took over the company in 1999.[7]

In 2002, Clayton earned a revenue of $1.2 billion.[11] It was acquired by Berkshire Hathaway Inc. in 2003 for $1.7 billion.[7][12][11] Cerberus Capital Management also expressed interest in bidding for the company.[13][14] The certificate of merger was filed in Delaware, and Clayton stock was removed from the New York Stock Exchange.[15][16] In 2007, Clayton Homes' revenue was $3.66 billion.[17]

Clayton Homes sold its land-lease communities business to Denver-based Yes Companies LLC in 2008. The deal involved 65 properties in 11 states.[18][19] The i-house brand was introduced in May 2008 as a green, energy efficient home.[20][1] By 2009, Clayton Homes had sold over 1.5 million homes.[1][2] In 2009, Clayton launched the eHome as a more affordable version of the i-house.[21]

In 2015, Clayton worked with Oak Ridge National Library and architectural firm Skidmore, Owings & Merrill to produce a 3D printed house and car which share a single energy unit.[22][23] Clayton Homes expanded into the traditional home building market with the acquisition of Georgia-based homebuilder Chafin Communities in 2015,[24] and Tennessee-based Goodall Homes in 2016.[25][26]

Clayton acquired River Birch Homes, based in Maryville, Alabama, in April 2016. The following month, Clayton hosted its first Birmingham-based home show. The show had 492 attendees and featured 27 homes from 27 facilities.[27] That same month, Clayton announced that it would partner with nonprofit Next Step to build a modular duplex in Waco, Texas on a lot owned by NeighborWorks Waco in order to create affordable housing in the Greater Waco area.[28] In 2016, Clayton Homes was recognized as number 292 on Forbes' list of America's Best Employers.[29] The company introduced a line of tiny homes during fall 2016 with the debut of its "Low Country" prototype in North Carolina.[30] The designer series received media acclaim from USA Today, The Post and Courier, among others.[31][32]

Operations[edit]

Clayton Homes produces homes under the brand names of Buccaneer Homes, Cavalier Homes, Clayton Homes, Crest Homes, Giles Industries, Golden West Homes, Karsten Company, Marlette Homes, Norris Homes, Schult Homes, and Southern Energy Homes. Clayton Homes also owns retail brands Oakwood Homes, TruValue Homes and Luv Homes.[33][34] In 2016, Clayton acquired G&I Homes, a family-run company based in New York.[35]

Hope for the Warriors[edit]

In 2015, Clayton Homes released the Patriot home model and partnered with the Hope for the Warriors veterans assistance group. Clayton gave a check for $33,600 to the organization in January.[36][37] Hope For The Warriors works with veterans from all branches of the military as well as post 9/11 active duty, National Guard, and reserve service members.[38][39] In May 2016, Clayton presented a $100,000 check to the organization.[40]

Controversy[edit]

Clayton Homes was involved in a lawsuit in 2011 with FEMA after providing trailers as part of Hurricane Katrina relief which were found to contain formaldehyde. Afterwards, prefab shelters provided to Haiti through the Clinton Foundation after the 2010 earthquake were also tested with high levels of formaldehyde.[41]

In 2015, a news story claimed that Clayton Homes unfairly targets and exploits minority home buyers.[42] Clayton Homes was further criticized for its alleged use of corrupt business practices. The company has denied discriminating its customers or its workers.[5][43][44] Warren Buffett, the CEO of Berkshire Hathaway, defended Clayton in an interview saying: "We have 300,000 loans on the books and in the last 3 years I've not received one letter of complaint from anybody."[45][46]

References[edit]

  1. ^ a b c Ariel Schwartz (4 May 2009). "Clayton Homes' i-house Combines Energy Efficiency and Modular Affordability". Fast Company. Retrieved 3 June 2016. 
  2. ^ a b Wendy Koch (December 9, 2009). "Clayton Homes joins prefab green building boom with $45,000 eHome". USA Today. Retrieved June 7, 2016. 
  3. ^ Andrew Ross Sorkin (31 July 2003). "Buffett Wins Battle to Buy Clayton Homes". The New York Times. Retrieved 3 June 2016. 
  4. ^ "#292 Clayton Homes". Forbes. Retrieved 3 June 2016. 
  5. ^ a b Dedrick Muhammad (22 January 2016). "Call for Federal Investigation Into Report of Racially Discriminatory Predatory Lending". Huffington Post. Retrieved 3 June 2016. 
  6. ^ Chambers Williams (April 11, 2016). "Clayton Homes buys Alabama manufactured-housing company". Knoxville News Sentinel. Retrieved June 7, 2016. 
  7. ^ a b c Jennifer Reingold (January 1, 2004). "The Ballad of Clayton Homes". Fast Company. Retrieved June 7, 2016. 
  8. ^ a b Duncan Mansfield (February 15, 1991). "Trailer park 'king' makes big business after humble beginnings in Tennessee". Kentucky New Era. 
  9. ^ "Small Company Initial Public Offerings: June 1983". Inc. Retrieved June 7, 2016. 
  10. ^ Lawrence A. Cunningham (December 24, 2014). "Ocwen Would Do Well to Follow the Lessons of Berkshire's Clayton Homes". The New York Times. Retrieved June 7, 2016. 
  11. ^ a b "Berkshire Hataway Agrees To Acquire Clayton Homes". Wall Street Journal. April 2, 2003. Retrieved June 7, 2016. 
  12. ^ Andrew Ross Sorkin (July 31, 2003). "Buffett Wins Battle to Buy Clayton Homes". The New York Times. Retrieved June 7, 2016. 
  13. ^ "Belated suitor woos Clayton Homes". USA Today. July 11, 2003. Retrieved September 4, 2016. 
  14. ^ Andrew Ross Sorkin (July 31, 2003). "Buffett Wins Battle to Buy Clayton Homes". The New York Times. Retrieved September 4, 2016. 
  15. ^ Amy Nolan (August 27, 2003). "Clayton Homes Shareholder Alleges Executive Fraud in Berkshire Hathaway Sale". The Knoxville News Sentinel. Retrieved September 4, 2016. 
  16. ^ Amy Nolen (August 8, 2003). "Clayton Homes Declares Merger with Berkshire Hathaway, Stops Trading Stock". Knight Ridder Tribune. Retrieved September 4, 2016. 
  17. ^ Amy Nolan (March 17, 2008). "Buffett gives Clayton Homes a high five". Orlando News Setinel. Retrieved September 4, 2016. 
  18. ^ Michael Silence (February 26, 2008). "Clayton completes sale of housing communities". Knoxville News Sentinel. Retrieved June 7, 2016. 
  19. ^ John Caulfield (March 7, 2008). "Clayton Homes to Focus on Subdivision Development". Builder Online. Retrieved June 7, 2016. 
  20. ^ Clayton's I-House: Prefab Green Homes Get Affordable. Popular Mechanics. January 15, 2009. accessed Jan 5, 2013.
  21. ^ Wendy Koch (December 9, 2009). "Clayton Homes joins prefab green building boom with $45,000 eHome". USA Today. Retrieved September 4, 2016. 
  22. ^ Brian Krassenstein (August 2015). "ORNL & Clayton Homes are 3D printing a home & car that share energy with one another". 3D Print. Retrieved June 7, 2016. 
  23. ^ "ORNL unveils integrated 3D printed house and car that produce and share clean energy". 3Ders. September 23, 2015. Retrieved June 7, 2016. 
  24. ^ Phil W. Hudson (November 2, 2015). "Buffett-owned company buys Georgia homebuilder for $50 million". Atlanta Business Chronicle. Retrieved June 7, 2016. 
  25. ^ John McManus (May 2, 2016). "Home Building Investment, Buffett-Style". Builder Online. Retrieved June 7, 2016. 
  26. ^ Getahn Ward (April 29, 2016). "Warren Buffett's company buys Gallatin's Goodall Homes". The Tennessean. Retrieved June 7, 2016. 
  27. ^ Ed Marcum (June 1, 2016). "Clayton Homes marks 60 years, new directions". Knoxville News Sentinel. Retrieved September 4, 2016. 
  28. ^ Mike Copeland (April 18, 2016). "Clayton Homes, NeighborWorks Waco join forces for affordable housing". Waco Tribune. Retrieved September 4, 2016. 
  29. ^ Kathryn Dill. "#292 Clayton Homes". Forbes. Retrieved September 4, 2016. 
  30. ^ "Clayton home building group unveils tiny home designer series". Retrieved 2016-09-22. 
  31. ^ "Home building group unveils tiny home designer series". Retrieved 2016-09-22. 
  32. ^ "Clayton Homes takes a turn from manufactured housing to introduce its own line of 'tiny homes,' including a model with Charleston ties". 2016-09-12. Retrieved 2016-09-22. 
  33. ^ Mike Baker and Daniel Wagner, Minorities exploited by Warren Buffett’s mobile-home empire The Seattle Times / BuzzFeed News, December 26, 2015.
  34. ^ "Our Modular and Manufactured Home Brands". Clayton Homes. Retrieved 3 June 2016. 
  35. ^ Ed Marcum (February 9, 2016). "Clayton acquired New York home retailer". Knoxville News Sentinel. Retrieved September 4, 2016. 
  36. ^ Steve Jordon (May 1, 2016). "Clayton Homes home had a 'sold' sign even before the meeting". Omaha.com. Retrieved September 4, 2016. 
  37. ^ "DeVore Homes participates in large contribution to nonprofit military support group". Daily Iowegian. February 17, 2016. Retrieved September 4, 2016. 
  38. ^ "DeVore Homes participates in large contribution to nonprofit military support group". Osceola Sentinel Tribune. February 16, 2016. Retrieved September 4, 2016. 
  39. ^ "Homes Plus participates in contribution to military support group". The News Star. February 1, 2016. Retrieved September 4, 2016. 
  40. ^ Matthew Silver (May 12, 2016). "Clayton Homes Inaugurates Birmingham Home Show". Daily Business News. Retrieved September 4, 2016. 
  41. ^ Isabel Macdonald and Isabeau Doucet The Shelters That Clinton Built The Nation, July 11, 2011.
  42. ^ Daniel Wagner, Mike Baker. Warren Buffett's mobile home empire preys on the poor. Billionaire profits at every step, from building to selling to high cost lending The Center for Public Integrity. April 3, 2015
  43. ^ Jonathan Stempel (February 27, 2016). "Buffett defends Clayton Homes after critics fault its lending". Reuters. Retrieved June 7, 2016. 
  44. ^ "Buffett Defends 3G and Clayton Homes as Berkshire Profit Grows". Fortune. February 27, 2016. Retrieved June 7, 2016. 
  45. ^ Javier E. David (May 2, 2015). "Warren Buffett defends Clayton Homes against claims of predatory lending". CNBC. Retrieved June 7, 2016. 
  46. ^ Anupreeta Das Warren Buffett Defends Clayton Homes WSJ, May 2, 2015. (subscription required)

External links[edit]