Consolidation In The Homebuilding Sector Continues As Toll Brothers Buys Coleman Homes

There is no let up in the consolidation of the Homebuilding sector irrespective of the deal size. The latest is Toll Brothers Inc's TOL acquisition of Coleman Real Estate Holdings LLC. Though the terms of the agreement weren't disclosed, the company gained entry into the Idaho market.

The key factor is that Toll Brothers brought a back log of about $40.8 million comprising 135 homes that offers an average price of $302,000. As a result, the company’s selling community count improves by about 13 communities at the closing date.

CEO Douglas Yearley, Jr. stated, "We are excited to enter the Boise market with the acquisition of Coleman Homes. Coleman is one of the premier homebuilders in the market with a reputation for delivering exceptional quality and value to its homeowners. The Toll Brothers–Coleman relationship dates back nearly two decades.”

Sector Consolidation

The following are some of the key consolidation data in the recent past:

• October 5, 2016: KB Home KBH buys Land in Cary location for new single-family home community for undisclosed terms.
• September 22, 2016: Lennar Corp LEN announced its agreement to buy WCI Communities Inc WCIC for $23.50 a share to expand its presence in Florida.
• September 6, 2016: D.R. Horton, Inc. DHI acquired Wilson Parker Homes to expand its presence in the greater Atlanta. The acquisition would help achieve more than 20 percent market share in the region.
• March, 2016: Taylor Morrison Home Corp TMHC revealed a joint venture with PulteGroup to buy lands in North Phoenix from Arizona State Land Development. On January 8, the company disclosed its agreement to buy homebuilding assets of Acadia Homes & Neighborhoods.
• December 16, 2015: PulteGroup, Inc. PHM agreed to buy some homebuilding assets of John Wieland Homes and Neighborhoods to expand its position within the existing markets.
• October 1, 2015: Standard Pacific and The Ryland Group Inc. RYL merge to establish CalAtlantic Group Inc. following their June 15 announcement. Ryland acquired LionsGate Homes in Dallas, Texas a few years before this.
• 2014: LGI Homes Inc. LGIH buys real estate assets from Oakmont Home Builders. The company acquired 1.98K acres in Lancaster County.