Southern Energy Homes Inc., a unit of Warren Buffett's Berkshire Hathaway Inc., said Monday that it has agreed to buy a rival, Cavalier Homes Inc., for about $51 million, or $2.75 a share, to increase sales of manufactured housing.

The price is a 23% premium over the June 12 closing price for Cavalier's stock. The company had 18.5 million shares outstanding as of April 23.

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