SCOTTSDALE, Ariz., Dec. 20, 2017 (GLOBE NEWSWIRE) -- AV Homes, Inc. (Nasdaq:AVHI), a developer and builder of residential communities in Florida, the Carolinas and Arizona, today announced that it has entered into a definitive agreement to acquire the home building assets of privately held, Dallas-Fort Worth, Texas-based Oakdale Homes and Hampton Homes for an aggregate purchase price of approximately $42 million in cash, subject to customary adjustments.
Oakdale/Hampton Homes is one of North Texas’ premier home builders with some of the most desirable communities. Primarily targeting the move-up buyers with its Oakdale Homes brand and first-time buyers with its Hampton Homes brand, the company has experienced strong growth, while earning a reputation for outstanding quality and customer focus, and building highly efficient, environmentally-friendly homes. Oakdale Homes and Hampton Homes have over 15 communities and expect to deliver more than 160 homes in 2017.
The transaction will mark AV Homes initial entry into the Dallas-Fort Worth market and will diversify its geographic footprint in a key growth market. At the completion of the transaction, AV Homes expects to acquire approximately 1,000 primary residential lots that are either owned or controlled.
In a statement, AV Homes President and CEO, Roger A. Cregg commented, "We are pleased to announce this strategic acquisition of Oakdale/Hampton Homes for AV Homes. The acquisition establishes our entry into the Dallas Metro Area marketplace and further achieves the Company's strategic goal of expanding its geographic footprint into attractive markets.”
Oakdale Homes and Hampton Homes CEO, Larry Craven, will continue to run the operations for AV Homes under their respective brands with no immediate changes to the operations. "We’re pleased to be joining the AV Homes team and to be the platform for continued growth in the Dallas-Fort Worth market," said Mr. Craven.
The transaction is expected to close in January 2018, subject to the satisfaction of customary closing conditions.
Bruce Robinson, Michael P. Kahn & Associates represented the seller in this transaction.
About AV Homes
AV Homes, Inc. is engaged in homebuilding and community development in Florida, the Carolinas and Arizona. Its principal operations are conducted in the greater Orlando, Jacksonville, Phoenix, Charlotte and Raleigh markets. The Company builds communities that serve both active adults (55 years and older) as well as people of all ages. AV Homes common shares trade on NASDAQ under the symbol AVHI. For more information, visit www.avhomesinc.com.
This news release contains "forward-looking statements" within the meaning of the U.S. federal securities laws, which statements may include information regarding the plans, intentions, expectations, future financial performance, or future operating performance of the Company and Oakdale Homes and Hampton Homes. These statements include, but are not limited to, the timing and likelihood of consummation of the Oakdale Homes and Hampton Homes acquisition and the benefits of the acquisition to AV Homes. Forward-looking statements are based on the expectations, estimates, or projections of management as of the date of this news release. Although our management believes these expectations, estimates, or projections to be reasonable as of the date of this news release, forward-looking statements are inherently subject to significant business risks, economic and competitive uncertainties, or other contingencies which could cause our actual results or performance to differ materially from what may be expressed or implied in the forward-looking statements. Such factors include, among others: the occurrence of any event, change or other circumstances that could give rise to the termination of the Oakdale Homes and Hampton Homes Agreement; the inability to complete the acquisition of Oakdale Homes and Hampton Homes’ business due to the failure to satisfy the conditions to completion of the transactions, unexpected costs or unexpected liabilities that may arise from the Oakdale Homes and Hampton Homes transaction, whether or not consummated; the outcome of any legal proceedings relating to the acquisition or the Oakdale Homes and Hampton Homes Agreement; risks to consummation of the acquisition, including the risks that the acquisition will not be consummated within the expected time period or at all; the risk that we will be unable to recognize the expected benefits of the proposed transaction and the risk that the proposed transaction disrupts current plans and operations. Important factors that could cause our actual results or performance to differ materially from our forward-looking statements include those set forth in the "Risk Factors" section of our most recent Annual Report on Form 10-K, and in our other filings with the Securities and Exchange Commission, which filings are available on www.sec.gov. AV Homes disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events and circumstances, except to the extent required by applicable law.
EVP, Chief Financial Officer
Source:AV Homes, Inc.