Meritage Homes Announces Entry into the Gulf Coast Markets with Acquisition of the Assets of Elliott Homes
Meritage Homes (NYSE:MTH), the fifth-largest public homebuilder in the U.S., announced its entry into the Gulf Coast markets through the acquisition of Elliott Homes, a top five Gulf Coast homebuilder operating in Mississippi, Alabama and the Florida panhandle. The acquisition includes over 5,500 lots, with production operations expected to begin in existing entry-level communities before year-end. This marks Meritage's first acquisition since 2014 and aligns with their spec building strategy of affordable entry-level homes. The company anticipates meaningful contribution from these operations in 2025.
Meritage Homes (NYSE:MTH), il quinto più grande costruttore di case pubblico negli Stati Uniti, ha annunciato il suo ingresso nei mercati del Golfo del Messico attraverso l'acquisizione di Elliott Homes, uno dei primi cinque costruttori di case nella regione operante in Mississippi, Alabama e nella Florida panhandle. L'acquisizione comprende oltre 5.500 lotti, con le operazioni di produzione che si prevede inizino nelle comunità di accesso entro la fine dell'anno. Questo segna la prima acquisizione di Meritage dal 2014 e si allinea con la loro strategia di costruzione di case accessibili per le fasce di ingresso. L'azienda prevede un contributo significativo da queste operazioni nel 2025.
Meritage Homes (NYSE:MTH), el quinto constructor de viviendas público más grande de EE. UU., anunció su entrada en los mercados de la Costa del Golfo a través de la adquisición de Elliott Homes, uno de los cinco principales constructores de viviendas de la Costa del Golfo que opera en Mississippi, Alabama y la parte norte de Florida. La adquisición incluye más de 5,500 lotes, con operaciones de producción que se espera comiencen en comunidades de nivel de entrada existentes antes de fin de año. Esto marca la primera adquisición de Meritage desde 2014 y se alinea con su estrategia de construcción de casas asequibles para el nivel de entrada. La compañía anticipa una contribución significativa de estas operaciones en 2025.
Meritage Homes (NYSE:MTH), 미국에서 다섯 번째로 큰 상장 주택 건설 회사는 미시시피, 앨라배마 및 플로리다 팬핸들에서 활동하는 상위 다섯 개의 Gulf Coast 주택 건설업체인 Elliott Homes 인수를 통해 Gulf Coast 시장에 진입한다고 발표했습니다. 인수에는 5,500개 이상의 부지가 포함되며, 생산 운영은 연말 전에 기존의 저렴한 주택 커뮤니티에서 시작될 것으로 예상됩니다. 이것은 2014년 이후 Meritage의 첫 번째 인수이며, 저렴한 입주자 수준의 주택을 위한 스펙 빌딩 전략과 일치합니다. 회사는 2025년 이러한 운영으로부터 의미 있는 기여가 있을 것으로 예상합니다.
Meritage Homes (NYSE:MTH), le cinquième constructeur de maisons public aux États-Unis, a annoncé son entrée sur les marchés de la côte du Golfe par l'acquisition d'Elliott Homes, l'un des cinq principaux constructeurs de maisons de la côte du Golfe opérant dans le Mississippi, l'Alabama et la péninsule de Floride. L'acquisition comprend plus de 5 500 terrains, avec des opérations de production qui devraient commencer dans des communautés d'accès existantes avant la fin de l'année. Cela marque la première acquisition de Meritage depuis 2014 et s'aligne avec leur stratégie de construction de maisons abordables pour les premiers acheteurs. L'entreprise prévoit une contribution significative de ces opérations en 2025.
Meritage Homes (NYSE:MTH), der fünftgrößte börsennotierte Hausbauer in den USA, hat seinen Eintritt in die Märkte an der Golfküste durch die Übernahme von Elliott Homes bekannt gegeben, einem der fünf größten Hausbauer an der Golfküste, der in Mississippi, Alabama und der Florida Panhandle tätig ist. Die Übernahme umfasst über 5.500 Grundstücke, wobei die Produktionsaktivitäten voraussichtlich noch in diesem Jahr in bestehenden Einstiegs-Communities beginnen werden. Dies markiert die erste Übernahme von Meritage seit 2014 und steht im Einklang mit ihrer Strategie zum Bau erschwinglicher Einstiegswohnungen. Das Unternehmen erwartet im Jahr 2025 einen wesentlichen Beitrag aus diesen Aktivitäten.
- Acquisition of over 5,500 lots in Gulf Coast markets
- Geographic expansion into three new states
- Strategic alignment with entry-level homes focus
- Expected meaningful revenue contribution by 2025
- Integration of established regional builder team
- None.
Insights
This strategic acquisition marks a significant expansion for Meritage Homes into the high-growth Gulf Coast region. The addition of 5,500 lots through Elliott Homes, a top-five regional builder, provides immediate scale and market presence. The Gulf Coast markets are experiencing strong demographic tailwinds from population migration and relatively affordable housing costs compared to other coastal regions.
The deal aligns perfectly with Meritage's entry-level, spec-building strategy and represents their first acquisition in a decade. Elliott's existing operations in Mississippi, Alabama and Florida's panhandle diversify Meritage's geographical footprint into markets with strong fundamentals. The immediate production capability means revenue contribution as early as 2025, with established operations and local market expertise through the retained Elliott team reducing execution risk.
This acquisition demonstrates excellent strategic execution by Meritage. By acquiring Elliott Homes, they gain instant market penetration without the typical multi-year ramp-up period required for organic expansion. The retention of Elliott's management team, including founder Brandon Elliott, preserves valuable local relationships and operational expertise.
The timing is particularly advantageous given the current housing market dynamics where established builders with strong balance sheets can expand market share. The deal structure focusing on asset acquisition rather than entire company purchase typically offers better risk management and tax advantages. The integration risk appears manageable given Elliott's complementary business model focusing on affordable entry-level homes.
SCOTTSDALE, Ariz., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Meritage Homes (NYSE:MTH), the fifth-largest public homebuilder in the U.S., today announced its entry into the Gulf Coast markets through the acquisition of the assets of Elliott Homes.
Elliott Homes (“Elliott”) is a top five Gulf Coast homebuilder with operations in Mississippi, Alabama and the Florida panhandle. With this acquisition, Meritage will acquire over 5,500 lots and expects to commence production operations in existing entry-level communities before the end of the year, with a meaningful contribution from these operations in 2025.
"This acquisition provides us with a respected team and valuable assets positioned in the highly desirable markets in the Gulf Coast," said Phillippe Lord, CEO of Meritage Homes. "This is our first acquisition since 2014 and aligns with our spec building strategy of affordable entry-level homes. We are excited to be partnering with founder and CEO Brandon Elliott and the entire Elliott team, as we welcome them into the Meritage family."
“I am proud of the Elliott team for their incredible growth as professionals,” said Brandon Elliott. “We look forward to joining Meritage and leveraging their scale as a top five national builder to bring more affordable quality homes to the Gulf Coast markets and most importantly, add value for the homebuyer.”
Builder Advisor Group served as the exclusive financial advisor for Elliott Homes.
About Meritage Homes Corporation:
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2023. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee.
Meritage has delivered over 190,000 homes in its 38-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.
For more information, visit www.meritagehomes.com.
The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include management's projected start of production operations in the Gulf Coast and the contribution of such operations in 2025.
Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in interest rates or decreases in mortgage availability, and the cost and use of rate locks and buy-downs; inflation in the cost of materials used to develop communities and construct homes; cancellation rates; supply chain and labor constraints; the ability of our potential buyers to sell their existing homes; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the adverse effect of slow absorption rates; legislation related to tariffs; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our exposure to counterparty risk with respect to our capped calls; our ability to obtain financing if our credit ratings are downgraded; our exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; shortages in the availability and cost of subcontract labor; the replication of our energy-efficient technologies by our competitors; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations; liabilities or restrictions resulting from regulations applicable to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2023 and our Form 10-Q for subsequent quarters under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.
| Contact: | Emily Tadano, VP Investor Relations and ESG |
| (480) 515-8979 (office) | |
| investors@meritagehomes.com |
FAQ
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