Taylor Morrison Home Corporation announced their plans to acquire AV Homes with an agreement valued at approximately $963 million. AV Homes, a company engaged in building and developing homes in Florida, the Carolinas, Arizona and Texas, is expected to see $30 million in annualized synergies from this acquisition.
Purchasing AV Homes’ outstanding common stock at $21.50 per share, Taylor Morrison sees this as an opportunity to expand into the affordable first-time buyer and active adult consumer base.
“This transaction, subject to customary closing conditions, will serve as a means to further enhance our land pipeline in the right locations, potentially offsetting some future land purchases, while simultaneously delivering land to our homebuilding operations with mature communities,” said Sheryl Palmer, chairman and CEO of Taylor Morrison. “What’s more, we believe the commonalities in product offerings and consumer groups will create opportunities for scale efficiencies and enhance our national footprint while creating top and bottom-line performance improvement.”
After receiving unanimous approval by both companies’ board of directors, the transaction will soon be submitted to AV homes stockholders and is expected to close late in the third quarter or early in the fourth quarter of 2018.
“We are pleased with the significant progress AV Homes has made over the last several years executing our growth strategy, including being recognized as the fastest growing public homebuilder in both 2015 and 2016. Through our focus on consumer segmentation and geographical diversification, we have grown our position in both existing and new attractive metropolitan areas,” Roger A. Cregg, president and CEO of AV Homes. “By combining with Taylor Morrison, one of the country’s finest homebuilders, we will create a premier homebuilder in some of the country’s highest growth areas and drive accretive returns for our shareholders for years to come.”