LGI Homes Acquires Real Estate Assets of Minnesota Homebuilder

Rhea-AI Summary

LGI Homes (NASDAQ: LGIH) has acquired KenRoe, Inc. for approximately $27 million. This acquisition includes 85 homes under construction, 130 finished lots, and control of 2,500 raw, undeveloped lots in the Minneapolis market. Eric Lipar, CEO of LGI Homes, emphasized the strategic importance of this purchase, highlighting its role in expanding operations and geographic presence. KenRoe's expertise in building entry-level homes complements LGI's portfolio, aiming for continued growth in a flourishing market.

Positive

• Acquisition of KenRoe enhances LGI's portfolio, providing access to 85 homes under construction and 2,500 undeveloped lots.
• Strategically expands LGI's presence in the high-demand Minneapolis market.
• Strengthens product offerings aimed at entry-level buyers.

Negative

• None.

THE WOODLANDS, Texas, May 07, 2021 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH) today announced it has acquired the real estate assets of Minneapolis, Minnesota-based KenRoe, Inc., a privately held homebuilder and land development company, for approximately $27 million at closing, subject to post-closing adjustments. KenRoe is recognized for building quality homes targeted at entry-level buyers. The acquired assets include approximately 85 homes under construction, 130 finished lots, and 390 lots either raw or under development. Additionally, LGI is acquiring control of approximately 2,500 raw, undeveloped lots that will be available for future sales as the Company continues to expand its operations throughout the Minneapolis market.

Eric Lipar, Chairman and Chief Executive Officer of LGI Homes said, "We are pleased to add KenRoe’s valuable portfolio of land and their experienced and dedicated team to the LGI Homes family. This opportunistic purchase complements our existing positions while expanding our geographic presence and product offerings, in the highly attractive and growing Minneapolis market."

KenRoe Owner and CEO, Kent Roessler, said, "LGI Homes is a perfect fit for our company. LGI sets a high standard with an outstanding reputation, a profitable business model, and an experienced management team which align with the vision we have at KenRoe. Our combined operational excellence will allow for continued growth in the Minneapolis market."

Builder Advisor Group LLC served as financial advisor to LGI Homes.

JTW Advisors LLC served as financial advisor to KenRoe.

About LGI Homes, Inc.
Headquartered in The Woodlands, Texas, LGI Homes, Inc. engages in the design, construction and sale of homes in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia and Pennsylvania. Since 2018, LGI Homes has been ranked as the 10^th largest residential builder in the United States based on units closed. The Company has a notable legacy of more than 18 years of homebuilding operations, over which time it has closed more than 45,000 homes. For more information about the Company and its new home developments, please visit the Company’s website at www.lgihomes.com.

CONTACT:
Joshua D. Fattor
Vice President of Investor Relations
(281) 210-2619
investorrelations@lgihomes.com

FAQ

What is the value of the LGI Homes acquisition of KenRoe, Inc.?

The acquisition is valued at approximately $27 million.

What assets did LGI Homes acquire from KenRoe?

LGI Homes acquired 85 homes under construction, 130 finished lots, and control of 2,500 raw, undeveloped lots.

Why did LGI Homes acquire KenRoe?

The acquisition aims to expand LGI's operations and geographic presence in the growing Minneapolis market.

How will the acquisition of KenRoe impact LGI Homes?

The acquisition is expected to enhance LGI's product offerings and support growth in the entry-level home market.

Who served as financial advisors for the acquisition deal?

Builder Advisor Group LLC advised LGI Homes, and JTW Advisors LLC advised KenRoe.