North American arm of Taylor Wimpey plc to be sold to TPG Capital, Oaktree Capital Management and JH Investments
Scottsdale, Ariz. – Top 10 North American homebuilder Taylor Morrison is being sold to a private investment consortium for $955 million, according to top company officials.
Taylor Wimpey plc announced today that it has agreed to sell its North American holdings, Taylor Morrison in the United States and Monarch in Canada, to investment funds separately managed by TPG Capital and Oaktree Capital Management, as well as JH Investments.
“We see this as a positive sign for the future of our business,” said Taylor Morrison CEO and President Sheryl Palmer. “The commitment and tenacity of our team has helped pave the road for today’s announcement.”
With homebuilding operations in Arizona, California, Colorado, Florida and Texas as well as in Canada, Palmer said the objective for the past year has been for all U.S. divisions to return to profitability, something she said was accomplished in 2010.
“We’ve weathered the storm while remaining true to our core values,” she said. “We’ve pulled through with a structure that we feel is very viable in today’s market.”
“We are pleased to add Taylor Morrison to our growing portfolio of real estate-related businesses,” said Kelvin Davis, TPG senior partner. “Along with Monarch, its Canadian business, Taylor Morrison is a premier North American homebuilder with a reputation for quality, superior design and customer satisfaction. We’re looking forward to working with the company’s management team who has done an excellent job leading the businesses through a difficult economic environment.”
John Brady, head of Oaktree’s global real estate investment strategy, added, “We’re excited about the opportunity to acquire this leading North American homebuilder along with its high-quality management team and portfolio of properties. We believe that the company’s international platform is an ideal vehicle for participating in the future recovery of the homebuilding industry.”
“We have been very intrigued with Taylor Morrison and Monarch for quite some time, and we are looking forward to being associated with this first class organization,” said Joe Houssian, Chairman, JH Investments.
Taylor Wimpey officials echoed Palmer’s sentiments in today’s sale announcement.
“In what has been an extremely challenging period for the industry, the company has greatly benefited from the commitment of its highly skilled management team and employees in North America, who together have been instrumental in creating a stronger North American business,” said Pete Redfern, Taylor Wimpey plc group CEO.
The transaction is contingent upon shareholder approval in the UK and customary regulatory approvals. The transaction is expected to close by the end of May 2011.
For more information on Taylor Morrison and its communities, visit www.taylormorrison.com.