AV Homes to Acquire Bonterra Builders in Charlotte, North Carolina

AV Homes, Inc.(Nasdaq: AVHI) ("AV Homes" or the "Company"), a developer and builder ofactive adult and conventional home communities in Florida, Arizona and theCarolinas, today announced that it has entered into a definitive agreementto acquire the home building assets of privately held, Charlotte, NorthCarolina-based Bonterra Builders LLC, for an aggregate purchase price ofapproximately $96 million in cash, subject to customary adjustments. Bonterra Builders is a recognized homebuilding leader in the GreaterCharlotte market, with a commitment to building exceptional homes inoutstanding communities. Focused primarily on the move-up buyer, BonterraBuilders has experienced strong growth, while earning a reputation foroutstanding quality and customer service. Bonterra Builders has over 30active communities and closed more than 300 homes in 2014. The transaction will establish AV Homes as one of the largest homebuildersin the Greater Charlotte, North Carolina market and will complement itsgrowing presence in the market. With nearly 1,700 primary residential lotsowned or controlled, Bonterra Builders enhances AV Homes' position in a keygrowth market. In a statement, AV Homes President and CEO, Roger A. Cregg said, "We arevery pleased to announce this strategic acquisition for AV Homes. Thetransaction with Bonterra Builders establishes a strong platform in theCarolinas and further achieves the Company's strategic goal of expanding itsoperations into attractive markets with strong economic fundamentals. Weexpect this acquisition to drive meaningful top-line revenue growth for thecompany, improve our SG&A leverage, and be accretive on an earnings basis toour shareholders." Mr. Cregg added, "The combination of the talented andwell-respected Bonterra Builders management team, their strong localrelationships and their desirable land positions will enhance and accelerateour earnings growth." Bonterra Builders President, Darren Sutton, will continue to run theoperations for AV Homes under the Bonterra Builders brand with no immediatechanges to the operations. "This is a wonderful opportunity for our companyand our employees," said Darren Sutton. "We look forward to joining the teamat AV Homes and working together as one of the leading homebuilders in theGreater Charlotte marketplace." The acquisition will be funded by cash on hand and AV Homes' revolvingcredit facility. The transaction has been approved by the AV Homes Board andis expected to close in July 2015, subject to customary closing conditionsand AV Homes' completion of third party financing in order to extend itsdebt maturities and support its growth strategy. An Investor Presentation containing further details regarding BonterraBuilders and the transaction can be found on the AV Homes website atwww.avhomesinc.com.