Century Communities Expands Southeast Presence Through Strategic Acquisition
Century Communities, Inc. (NYSE:CCS) (the "Company"), a top-25 US homebuilder of single-family homes, townhomes and flats in select markets, today announced it has acquired ownership of 50% of Wade Jurney Homes, Inc.
Century Communities, Inc. (NYSE:CCS) (the "Company"), a top-25 US homebuilder of single-family homes, townhomes and flats in select markets, today announced it has acquired ownership of 50% of Wade Jurney Homes, Inc. and Wade Jurney of Florida, Inc. (collectively "Wade Jurney") through investment in a newly formed entity, WJH, LLC. Wade Jurney, which primarily targets first time home buyers in the Southeast, was the 60 th largest U.S. homebuilding operation as measured by 2015 closings and was named by Builder Magazine as the fastest growing private builder. Wade Jurney is a regional leader in providing affordable homes of outstanding quality in 17 markets within North Carolina, South Carolina, Florida and Georgia. Wade Jurney specializes in providing single family homes and townhomes for first time buyers with sales prices generally ranging from $100,000 to $180,000 and home sizes generally ranging from 1,000 to 3,000 square feet. Its operations are exceptionally streamlined and its homes are uniquely sold through retail outlets as opposed to model homes. Century Communities purchased a 50% ownership interest in WJH LLC for $15 million. Wade G. Jurney, Jr. ("Wade") will own the other 50% of the entity. Both Century Communities and Wade also each contributed an additional $3 million in capital bringing Century's total investment to $18 million. As of September 30 th, Wade Jurney had approximately 3,949 owned and controlled lots and 309 homes in backlog representing a value of $42.7 million. For the trailing twelve month period ended September 30, 2016, Wade Jurney closed 1,060 homes generating $148.2 million in revenue. Century Communities and Wade will share responsibility for all of the strategic decisions, with Wade continuing to manage the day to day operations under the existing operating model. "As we seek to further diversify our product platform across buyer profiles, this acquisition scales our access to first time homebuyers in a very efficient manner," said Dale Francescon, Co-Chief Executive Officer. "By partnering with Wade Jurney we are able to leverage its unique business model, which requires less capital investment yet yields quicker asset turns." Rob Francescon, Co-Chief Executive Officer, added, "We believe this investment will generate a high return on equity for Century shareholders while providing increased geographic exposure into one of the fastest growing regions of the country. Given the demonstrated success of the Wade Jurney brand and the growing strength of the entry level buyer, we plan to expand this platform into additional markets."