Meritage Homes Corporation, a leading U.S. homebuilder, announced its definitive agreement to acquire the homebuilding assets and operations of Atlanta-based Legendary Communities for a purchase price of approximately $130 million.
Legendary is one of the largest privately-held homebuilders operating along the I-85 corridor of the Southeastern U.S. with a significant presence in the Atlanta and Greenville-Spartanburg markets, and a position in Charlotte that is expected to bolster Meritage’s current operations there. Atlanta is the second largest and fastest growing housing market in the U.S. based on single-family permits activity in 2013, and the Greenville-Spartanburg market is expected to experience growth in single-family permits of approximately 20% from 2013 to 2015. Both Atlanta and Greenville-Spartanburg will be new markets for Meritage, while Legendary’s Charlotte operations will be combined into Meritage’s existing division there.
Legendary was founded in 2009 and builds homes primarily for first and second move-up buyers with base home prices ranging from approximately $120,000 to $550,000. The company closed approximately 500 homes and generated approximately $156 million of revenue in 2013. As of June 30, 2014, Legendary owned or controlled approximately 4,000 home sites.
“This is a strategic acquisition for Meritage, expanding our southeastern operations in a meaningful way by entering into two more growing housing markets in Atlanta and Greenville-Spartanburg, while also solidifying our position in the Charlotte market,” said Steven J. Hilton, chairman and CEO of Meritage Homes. “Legendary is a good fit for Meritage due to its customer base, land acquisition strategy, and positive culture based on trust, honesty and quality construction. They have a great team of people who can help us grow our business in the Southeast, and we are pleased to have them join the Meritage team.”
“We are excited about the opportunities this represents for both Meritage and Legendary through the combination of our community locations, beautiful homes and dedicated employees,” said Bo Means, chief executive officer of Legendary Communities.
Zelman Partners LLC served as exclusive financial advisor for Legendary Communities.