Shares of Champion Enterprises Inc. (NYSE: CHB) are rising following news after the close on Thursday that the maker of factory-built housing has acquired Canadian modular homes maker SRI Homes for $114 million.

“This acquisition, which will be accretive to Champion’s 2008 earnings, represents another exciting step in our growth and diversification strategy by expanding our presence in a geographic region which continues to experience economic growth and robust residential and commercial construction markets,” said president and CEO William Griffiths in a statement.

Auburn Hills, Mich.-based Champion Enterprises will add SRI Homes’ three manufacturing facilities to its existing web of 31 plants in North America and the United Kingdom. The buyout will also allow Champion Enterprises to take advantage of SRI Homes’ retailer-based distribution channels and improve its market position in western Canada.

SRI Homes’ has a total of 38 dealers, the majority of them located in the western Canadian provinces of British Columbia and Alberta.

The deal is expected to be finalized by the close of business today. The combined company will have a Canadian factory-built housing market share of an about 39%.

At 1:47 p.m. ET, shares of Champion Enterprises (CHB) had climbed $0.88, or 11%, to $9.13. The 52-week high of $14.59 was reached on Oct. 17, while the 52-week low of $7.18 was set on Mar. 6.

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