Purchase Includes 5,200 Entitled Home Sites Representing Coastal California's Premier Diversified Upscale Land Portfolio
Toll Brothers Will Host a Conference Call Tomorrow Morning, November 7, 2013, at 8:30 a.m. EST to Discuss the Transaction (Details Below)
HORSHAM, Pa. and BEVERLY HILLS, Calif., Nov. 6, 2013 (GLOBE NEWSWIRE) -- Toll Brothers, Inc., (NYSE:TOL) ( www.tollbrothers.com ), the nation's leading builder of luxury homes, and Shapell Industries, Inc. ("Shapell"), a premier private California builder, today announced that they have entered into a definitive purchase agreement under which Toll Brothers will acquire the home building business of Shapell in a stock acquisition for approximately $1.60 billion in cash.Shapell has a long and illustrious history as one of California's largest and most successful land development and home building companies in the affluent coastal markets of Northern and Southern California. Since its founding in 1955 by brothers Nathan and David Shapell, and brother-in-law Max Webb, Shapell has delivered more than 70,000 homes. Shapell's land portfolio, which Toll Brothers is acquiring, consists of approximately 5,200 home sites, 97.5% of which are entitled, in established communities. This land was assembled over many decades in many of the state's most affluent and high-growth markets: the San Francisco Bay area, metro Los Angeles, Orange County and the Carlsbad market. Through August 31 st of calendar year 2013, Shapell has delivered 347 homes at an average price of $791,000. Having entered the California market in 1994, Toll Brothers has delivered over 7,700 homes, generating approximately $6.5 billion in revenue from more than 90 communities in the state. Toll Brothers is currently offering homes in 9 communities in affluent Coastal California markets at an average price of approximately $1,000,000. The approximately 5,200 lots Toll Brothers expects to acquire from Shapell would bring Toll Brothers' total lots owned and controlled in California to approximately 9,200.