Original article by: BUILDER Online
Richmond American Homes of Tennessee is expected to add 10 communities, 1,700 controlled lots, and 150 units in backlog to its portfolio.
M.D.C. Holdings announced that its subsidiary Richmond American Homes of Tennessee has entered into an asset purchase agreement to acquire substantially all of the home building assets of The Jones Company of Tennessee.
M.D.C. expects the transaction to close near the end of the second quarter of 2022, and it is expected to add approximately 10 selling communities, 1,700 controlled lots, and 150 units in backlog to the operations of Richmond American.
"Howard [Chilcutt], Ken [Stricker], and the Jones team have built a tremendous home building organization in Nashville over the past three decades. We are excited to welcome the Jones team into the Richmond American family and look forward to growing our footprint in one of the country's best housing markets,” says David D. Mandarich, M.D.C.'s president and CEO. “We believe that this transaction, combined with the organic land pipeline we have secured since starting in Nashville about 12 months ago, has the potential to launch Richmond American into a leadership position in the Nashville market."
Jones closed over 370 homes in fiscal year 2021 in the Nashville area with an average sales price of $564,000, generating revenues of $209 million.
"I am extremely proud of the business we have built in Nashville over the last 27 years. My priority in identifying a purchaser for this transaction was to provide our people with the opportunity to continue to grow well into the future,” says Stricker, CEO of The Jones Company of Tennessee. “The Richmond American Homes companies have a proven track record of growth. Richmond American will be looking to the Jones team to build its operations into one of the largest home builders in Tennessee. I am grateful to Howard Chilcutt for his vision and ongoing support after establishing our operations in Nashville with Bob Jones nearly 30 years ago."
Whelan Advisory Capital Markets served as exclusive M&A advisor to Jones in the transaction.