NEWPORT BEACH, Calif.--(BUSINESS WIRE)--William Lyon Homes, Inc. which develops new home communities in California, Arizona and Nevada, today announced that it has acquired various entities which operate under the Village Homes name in the Denver metro area, Fort Collins, and Granby, Colorado markets. The acquisition marks William Lyon Homes Inc.’s entry into the Colorado market.
“The successful completion of this acquisition is another major accomplishment which will help William Lyon Homes continue to grow as a leader in the homebuilding industry. Village Homes and its employees have developed an excellent reputation for quality and service and we welcome them to the William Lyon family,” said Chairman and Chief Executive Officer General William Lyon.
The Village Homes brand was established in 1984 and has been a leading developer and builder of move-up homes, selling more than 10,000 homes in the Denver area over the past 25+ years. The company has been recognized as one of Colorado’s most respected developers and received numerous awards including the Homebuilders Association of Denver’s 2012 ‘Community of the Year’ for its Village of Five Parks development in Arvada, Colorado.
Village Homes currently operates five actively selling communities, and owns and controls over 700 residential lots. At the time of acquisition Village Homes’ backlog of homes sold, but not yet closed, was approximately $34 Million. Its average home selling price for 2012 year-to-date was approximately $380,000.
“Village Homes is a leader in the fast growing Denver and Fort Collins markets. This acquisition is consistent with our strategy of operating and gaining market share in the best homebuilding markets in the Western United States. We feel this transaction will benefit the combined companies from day one and for many years to come,” Chief Operating Officer and President William H. Lyon stated.
Village Homes will immediately begin operating as a division of William Lyon Homes, Inc. J. Eric Eckberg, President of Village Homes, will continue to oversee the operations of Village Homes and will report to Matthew R. Zaist, Executive Vice President of William Lyon Homes, Inc.
“The acquisition of Village Homes caps a year of growth and change at William Lyon Homes. The Company has seen an inflow of over $125 Million in new equity and continued growth in operating margins and market share in each of our core markets. Our recent capital markets transaction completed in November resulted in the sale of $325 Million of unsecured bonds which the Company used to refinance our existing secured debt,” said Executive Vice President Matthew R. Zaist.
Houlihan Lokey served as special advisors to the Company’s executive management team and the board of directors on the transaction. Gibson, Dunn and Crutcher served as special counsel to the Company on the transaction.
About William Lyon Homes
William Lyon Homes is primarily engaged in the design, construction and sale of new single-family detached and attached homes in California, Arizona and Nevada. Since its founding in 1956, the company has sold in excess of 74,000 homes. Its corporate headquarters is located in Newport Beach, California. For more information about William Lyon Homes and its new home developments, please visit its website at www.lyonhomes.com.
About Village Homes
Village Homes is primarily engaged in the development of residential communities, and the design, construction and sale of new single family detached homes in Colorado. Its headquarters is located in Greenwood Village, Colorado. For more information about Village Homes and its new home developments, please visit its website at www.villagehomes.com.
Certain statements contained in this release that are not historical information contain forward-looking statements. The forward-looking statements involve risks and uncertainties and actual results may differ materially from those projected or implied. Further, certain forward-looking statements are based on assumptions of future events which may not prove to be accurate. Factors that may impact such forward-looking statements include, among others, changes in general economic conditions and in the markets in which the Company competes, terrorism or hostilities involving the United States, changes in mortgage and other interest rates, changes in prices of homebuilding materials, weather conditions, the occurrence of events such as landslides, soil subsidence and earthquakes that are uninsurable, not economically insurable or not subject to effective indemnification agreements, the availability of labor and homebuilding materials, changes in governmental laws and regulations, the timing of receipt of regulatory approvals and the opening of projects, and the availability and cost of land for future development, as well as the other factors discussed in the Company’s reports filed with the Securities and Exchange Commission