Meritage Homes CorporationNYSE
Meritage Homes Corp.: Buy While It Is Cheap
Tue, Nov. 1, 9:59 AM
- Discussions about homebuilding M&A have been picking up of late, says analyst Will Randow, and he expects the next deal will likely be one public company acquiring another, rather than a smaller private player.
- "Aside from the normal benefits of M&A, we believe larger public builders may be more inclined to acquire the young (i.e. smaller public) given the slower paced recovery environment that exhibits lower pricing power," says Randow, who picks D.R. Horton (NYSE:DHI) as best-positioned to be a buyer.
- Other possible acquirers include: KB Home (NYSE:KBH), Meritage (NYSE:MTH), PulteGroup (NYSE:PHM), Toll Brothers (NYSE:TOL), and TRI Pointe (NYSE:TPH).
- Potential targets: Century Communities (NYSE:CCS), Green Brick Partners (NASDAQ:GRBK), M.D.C. Homes (NYSE:MDC), Meritage (also on the buyer list), New Home (NYSE:NWHM), Taylor Morrison (NYSE:TMHC), UCP, William Lyon (NYSE:WLH).
- Randow's top accretive scenario ... TRI Pointe buying William Lyon.
Jul. 10, 2014, 4:12 PM
- Legendary Communities operates along the I-85 corridor of the Southeast, with a significant presence in the Atlanta and Greenvile-Spartanburg markets, along with a position in Charlotte (where MTH already has a presence). Founded in 2009, Legendary builds homes mostly for first and second move-up buyers in the price range of $120K-$550K. The company closed about 500 homes with $156M of revenue last year, and controls about 4K home sites as of June 30.
- The purchase price is about $130M.
Sep. 4, 2013, 3:19 PM
- Meritage Homes (MTH -0.5%) acquires Nashville-based Phillips Builders for an undisclosed sum.
- This is MTH's fourth expansion market in two years.
- The deal gives MTH ~500 lots and its first presence in the area.
- "The acquisition of Phillips Builders provides MTH with a successful operation, respected management team and valuable asset position," CEO Steven Hilton says. (PR)
- More on MTH: SA contributor David Guarino says Meritage "is one of the better positioned builders to capitalize on the recovery."