AV Homes Expands Southeast Footprint
- Mar 07, 2017
Raleigh, N.C.—AV Homes Inc. recently announced that it will purchase the home building assets of privately held, Raleigh-based Savvy Homes. The acquisition has been arranged for an aggregate purchase price of approximately $50 million in cash, subject to customary adjustments. Michael P. Kahn & Associates represented the seller on the transaction.
Acquisition funds will be sourced from cash on hand and AV Homes’ revolving credit facility. The transaction has been approved by the AV Homes Board of Directors and is expected to close in the second quarter of 2017.
“We are excited to announce this strategic acquisition for AV Homes. By acquiring the homebuilding operations of Savvy Homes, we establish a stronger platform in the Raleigh market and further the company’s strategic goal of expanding in attractive markets with strong economic fundamentals,” said Roger Cregg, president and CEO of AV Homes, in a prepared statement.
Savvy Homes is a 12-year old regional homebuilding company in the Greater Raleigh market. Savvy Homes owns more than 20 active communities. This transaction will establish AV Homes as one of the largest homebuilders in the Greater Raleigh market, with approximately 230 primary residential lots owned and more than 1,900 lots controlled, under LOI or in their pipeline.
Savvy Homes CEO, Darrell Daigre, and president, George Aiken, will continue to run the operations for AV Homes under the Savvy brand with no immediate changes.
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