HOUSTON – (Realty News Report) – Dream Finders Homes of Jacksonville, Fla., has agreed to acquire Houston-based MHI-McGuyer Homebuilders Inc. in a transaction valued at $475 million.
MHI-McGuyer, which markets homes in Texas under the Coventry Homes brand, ranked No. 37 nationally last year with 2,082 closings in 2020, according to the Builder 100 rankings. The company’s average sales price last year was $441,779.
In the Houston market, MHI-McGuyer ranked #11 with 1,194 starts for the 12-month period ending June 30, 2021. Home sales have been strong in Houston.
Founder Frank McGuyer: “Proud” of 30 Years of Building
Frank McGuyer, founder of MHI, said he is “extremely proud of the businesses we have built over the last 30 years.” He added that his strategic priority in choosing a merger partner was to ensure that the company’s people and the Coventry brand would be positioned to grow after the transaction. McGuyer noted that Dream Finders Homes (DFH) has a proven record of expansion and will rely on Coventry’s leadership to help build the combined company into one of the largest home builders in Texas.
Mergers and acquisitions remain a significant trend in the homebuilding industry, as acquiring another firm can be an effective way to gain access to lots and experienced personnel, said Houston housing analyst Lawrence Dean of Zonda.
Japanese Firm Purchases Another Houston Builder
In a related series of transactions last month, Japan-based Daiwa House announced the purchase of an 80 percent stake in CastleRock Communities, a Houston-based homebuilder, for $400 million. CastleRock builds across Houston, Austin, Dallas and San Antonio, and it sold 926 homes in Houston over the past year. According to Zonda’s second-quarter report, CastleRock ranks as the 17th largest builder in the Houston area.
Daiwa House has continued to expand its U.S. footprint. Recently it was announced that Florida-based Avex Homes will join the Daiwa organization. Avex, which has about 300 homes under construction in Florida, controls roughly 4,400 lots across Orlando, Tampa and Daytona. Daiwa’s Stanley Martin Homes subsidiary is acquiring Avex.
Sept. 21, 2021 Realty News Report. Copyright 2021.
Photo credit: Ralph Bivins, Realty News Report. Copyright 2021.
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File: Major Houston Builder Acquired
File: MHI, McGuyer Homebuilders Inc. – Major Houston Builder Acquired by Dream Finders Homes. Zonda. Daiwa House. CastleRock Communities.