SCOTTSDALE, Ariz., March 03, 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, Raleigh, North Carolina-based Savvy Homes for an aggregate purchase price of approximately $50 million in cash, subject to customary adjustments.
Savvy Homes is a well-recognized regional homebuilding leader in the Greater Raleigh market, with a commitment to building exceptional homes in outstanding communities. Primarily targeting the first-time buyer and move-up buyer, Savvy Homes has experienced strong growth, while earning a reputation for outstanding quality and customer focus. Savvy Homes has over 20 active communities and delivered more than 250 homes in 2016.
The transaction will establish AV Homes as one of the largest homebuilders in the Greater Raleigh, North Carolina market and will complement its growing presence in the market. With approximately 230 primary residential lots owned and over 1,900 lots controlled, under LOI or in their pipeline, Savvy Homes will enhance AV Homes' position in a key growth market.
In a statement, AV Homes President and CEO, Roger A. Cregg said, "We are excited to announce this strategic acquisition for AV Homes. By acquiring the homebuilding operations of Savvy Homes, we establish a stronger platform in the Raleigh market and further the Company's strategic goal of expanding in attractive markets with strong economic fundamentals.” Mr. Cregg added, "The combination of the talented and experienced Savvy Homes management team, strengthens our position in the market and complements our successful Active Adult community in Raleigh."
Savvy Homes CEO Darrell Daigre and President George Aiken, will continue to run the operations for AV Homes under the Savvy brand with no immediate changes to the operations. "We look forward to joining the AV Homes team and working together as one of the leading homebuilders in the highly attractive Raleigh market," said Mr. Daigre.
The acquisition will be funded by cash on hand and AV Homes’ revolving credit facility. The transaction has been approved by the AV Homes Board of Directors and is expected to close in the second quarter of 2017, subject to the satisfaction of customary closing conditions.
Michael P. Kahn 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 Savvy Homes. These statements include, but are not limited to, the timing and likelihood of consummation of the Savvy 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 Savvy Agreement; the inability to complete the acquisition of Savvy’s business due to the failure to satisfy the conditions to completion of the transactions, unexpected costs or unexpected liabilities that may arise from the Savvy transaction, whether or not consummated; the outcome of any legal proceedings relating to the acquisition or the Savvy 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.