Taylor Morrison Home Corporation announced on Thursday, June 7, 2018 that they will be acquiring homebuilder AV Homes Inc. for nearly $1 billion. The acquisition is predicted to be completed in either the late third quarter or early fourth quarter of 2018 though closing will be subject to customary conditions.
According to the terms of the deal, Taylor Morrison will acquire all remaining shares of AV Homes, Inc. for up to $21.50 per share. The transaction is currently valued at about $963 million and will include any and all of AV Homes’ outstanding debt. The Board of Directors for both companies have approved the deal and it will also be submitted to AV Homes stockholders from final approval. AV Homes’ stockholders will have the options to receive $21.50 in cash per share.
“The joining of Taylor Morrison and AV Homes supports our strategic growth priority by bringing us deeper into five of our current markets, further expanding our offerings in the affordable first-time buyer and active adult consumer segments,” said Sheryl Palmer, chairman and CEO of Taylor Morrison. “This transaction…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.”
Taylor Morrison stated in a release that AV Home’s portfolio complemented it’s own with homebuilding operations in Florida, North and South Carolina, Arizona and Texas. This acquisition will allow Taylor Morrison to expand further into the affordable and first-time buyer market while growing their product portfolio in the affordable active adult marketing in several areas across the U.S. Ultimately, this deal will end up increasing scale and market shares in five major housing markets.
More information will be available later on.
About Taylor Morrison Home Corporation
Taylor Morrison, a leading national homebuilder and #7 on The Builder 100 America’s Biggest Builders list, is based in Scottsdale, Arizona. The builder provides homes for first-time and move-up buyers, along with luxury and 55+ buyers. For more information about Taylor Morrison, please visit www.taylormorrison.com.
About AV Homes, Inc.
AV Homes has built homes in Florida, the Carolinas, Arizona, and Texas with its principle operations located in Orlando, Jacksonville, Phoenix, Charlotte, and Dallas Fort-Worth. The company builds homes for active adults (55+), and buyers of all ages. For more information on AV Homes please visit www.avhomesinc.com