PulteGroup to Buy John Wieland Assets in U.S. Southeastby
Homebuilder to pay about $430 million to $450 million in cash
Deal gives PulteGroup `robust land pipeline' in area, CEO says
The deal includes about 7,400 controlled lots and 280 homes in backlog, Atlanta-based PulteGroup said in a statement Wednesday. The company will pay about $430 million to $450 million in cash for the properties, according to the statement. The purchase, from affiliates of Wheelock Street Capital and the Wieland family, is expected to close by March.
John Wieland Homes builds houses in Atlanta; Charleston, South Carolina; Charlotte and Raleigh, North Carolina; and Nashville, Tennessee. In the 12 months through September, the company delivered about 565 homes at an average selling price of $495,000, according to the statement.
“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.
PulteGroup rose 2.8 percent to $17.88 at 10:24 a.m. in New York. The shares have dropped 17 percent this year.