ATLANTA, Dec. 16, 2015 /PRNewswire/ -- PulteGroup, Inc.
(NYSE: PHM) announced today that it has entered into an agreement
to acquire certain homebuilding assets of John Wieland Homes and
Neighborhoods ("Wieland"), one of the country's premier builders of
move-up and luxury homes, from affiliates of Wheelock Street
Capital, L.L.C. and the Wieland family. As part of the
transaction, PulteGroup expects to acquire approximately 7,400
controlled lots and 280 homes in backlog.
Pending completion of standard due diligence and customary
closing conditions, the purchase is expected to close no later than
the first quarter of 2016. The Company plans to use available
cash to fund the purchase price of approximately $430 million to $450 million, subject to any
final post-closing adjustments. The Company expects this
transaction will be immediately accretive to earnings and cash
flows.
Headquartered in Atlanta,
Wieland ranks among the country's 100 largest homebuilders and is a
leading builder of luxury homes in Atlanta, Charleston, Charlotte, Nashville and Raleigh. In the 12 months
ended September 2015, Wieland
delivered approximately 565 homes at an average selling price of
$495,000 and generated $280 million in revenue.
"Population growth and housing demand in the Southeast are
expected to remain strong for years to come, so this acquisition of
the John Wieland Homes and Neighborhoods brand and its robust land
pipeline provides a great opportunity to increase our market share
and operating leverage in five important cities, while expanding
our presence in the luxury segment," said Richard J. Dugas, Jr., Chairman, President and
Chief Executive Officer of PulteGroup.
"We have tremendous respect for the experienced team within the
Wieland organization, the quality of the homes they deliver and the
strength of the Wieland brand," added Dugas. "Upon completion of
the transaction, we will move quickly to capture operational
efficiencies while working to grow annual production volumes."
"Having worked for Pulte earlier in my career, I have a strong
appreciation for the proud history, reputation for quality and
dedicated professionals in each organization," said Gregory Huff, Chief Executive Officer of John
Wieland Homes. "We look forward to joining a national homebuilder
where we share the same beliefs with regard to delivering superior
product quality and outstanding service to our
customers."
Forward-Looking Statements
This press release includes "forward-looking statements."
These statements are subject to a number of risks, uncertainties
and other factors that could cause our actual results, performance,
prospects or opportunities, as well as those of the markets we
serve or intend to serve, to differ materially from those expressed
in, or implied by, these statements. You can identify these
statements by the fact that they do not relate to matters of a
strictly factual or historical nature and generally discuss or
relate to forecasts, estimates or other expectations regarding
future events. Generally, the words "believe," "expect,"
"intend," "estimate," "anticipate," "project," "may," "can,"
"could," "might," "will" and similar expressions identify
forward-looking statements, including statements related to
expected operating and performing results, planned transactions,
planned objectives of management, future developments or conditions
in the industries in which we participate and other trends,
developments and uncertainties that may affect our business in the
future.
Such risks, uncertainties and other factors include, among other
things: our ability to successfully close the transaction upon its
terms and in a timely manner; interest rate changes and the
availability of mortgage financing; continued volatility in the
debt and equity markets; competition within the industries in which
PulteGroup operates; the availability and cost of land and other
raw materials used by PulteGroup in its homebuilding operations;
the impact of any changes to our strategy in responding to the
cyclical nature of the industry, including any changes regarding
our land positions; the availability and cost of insurance covering
risks associated with PulteGroup's businesses; shortages and the
cost of labor; weather related slowdowns; slow growth initiatives
and/or local building moratoria; governmental regulation directed
at or affecting the housing market, the homebuilding industry or
construction activities; uncertainty in the mortgage lending
industry, including revisions to underwriting standards and
repurchase requirements associated with the sale of mortgage loans;
the interpretation of or changes to tax, labor and environmental
laws; economic changes nationally or in PulteGroup's local markets,
including inflation, deflation, changes in consumer confidence and
preferences and the state of the market for homes in general; legal
or regulatory proceedings or claims; our ability to generate
sufficient cash flow in order to successfully implement our capital
allocation priorities; required accounting changes; terrorist acts
and other acts of war; and other factors of national, regional and
global scale, including those of a political, economic, business
and competitive nature. See PulteGroup's Annual Report on
Form 10-K for the fiscal year ended December
31, 2014, and other public filings with the Securities and
Exchange Commission (the "SEC") for a further discussion of these
and other risks and uncertainties applicable to our
businesses. PulteGroup undertakes no duty to update any
forward-looking statement, whether as a result of new information,
future events or changes in PulteGroup's expectations.
About PulteGroup
PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America's largest
homebuilding companies with operations in approximately 50 markets
throughout the country. Through its brand portfolio that
includes Centex, Pulte Homes, Del
Webb and DiVosta Homes, the Company is one of the industry's
most versatile homebuilders able to meet the needs of multiple
buyer groups and respond to changing consumer demand.
PulteGroup conducts extensive research to provide homebuyers with
innovative solutions and consumer inspired homes and communities to
make lives better.
For more information about PulteGroup, Inc. and PulteGroup
brands, go to www.pultegroupinc.com; www.pulte.com; www.centex.com;
www.delwebb.com and www.divosta.com.
About Wheelock Street Capital
Wheelock Street Capital is a private real estate investment firm
with offices in New York,
Greenwich and Boston. The firm
manages over $3 billion of real
estate assets and is currently investing its fourth fund. Wheelock
will invest in a broad range of real estate assets throughout
the United States. Its funds may
invest directly or with high quality joint venture partners through
a variety of capital structures and transaction types, including
acquisitions, restructurings, and recapitalizations.
www.wheelockst.com.
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SOURCE PulteGroup, Inc.