MHI Acquires Assets of Wilshire Homes
AUSTIN, Texas, April 7, 2011 /PRNewswire/ -- The assets of Austin-based Wilshire Homes have been acquired by MHI Central Texas, LLC, an affiliate of McGuyer Homebuilders, Inc. ("MHI"), a major private homebuilder that builds in all major Texas markets. The combination of the two companies will create a builder that will sell, build and close more than 400 homes in 2011 with projected sales revenues in excess of $120 million in the Austin and San Antonio markets.
The combined entity will continue the use of the current MHI brand names– Coventry Homes and Plantation Homes – with the inclusion of the Wilshire Homes brand in Austin and San Antonio. Wilshire is currently selling in 12 communities and MHI is selling in an additional 19 communities in the Austin and San Antonio markets.
"We are extremely proud of the brand we've built here in Central Texas and are looking forward to even greater success with the new company," said Ed Horne, Wilshire's founder and longtime CEO. Ed Horne will join the new venture as senior vice president and will have a significant role going forward.
"MHI has been looking for an opportunity to grow our business in Austin and San Antonio for some time," Gary Tesch, president of MHI, said. "An acquisition of an existing company with a stellar reputation was our best option for both growth and profitability."
"In addition, Ed Horne and the other members of Wilshire's management team have deep roots in Central Texas," Tesch said. "We knew we could build on the company's tradition of excellence and integrity."
The new company plans to expand its operations to allow for the construction of more than 600 homes a year and $180 million in annual revenue by 2014.
Tesch said Wilshire Homes was the perfect candidate for several reasons, including:
- The Wilshire lots in Central Texas complement MHI's existing operations.
- Wilshire's price points were comparable to MHI's Plantation and Coventry brands.
- MHI was impressed with Wilshire's "Build on Your Lot" program and felt that it could readily be expanded beyond Austin and San Antonio.
Horne and the late Nash Phillips began Wilshire Homes in 1991 and expanded to San Antonio in 1996.
The support of financial institutions was another positive factor in the acquisition. Primary lenders for MHI Central Texas are expected to be the Royal Bank of Canada, Texas Capital Bank, International Bank of Commerce and Frost Bank.
Carolynn Alexander, Director of Syndications and Initiatives for RBC Bank, said of the combination "I have banked MHI and Wilshire since the early 1990s and view both builders as top players in the industry. Their combined lot positions in San Antonio and Austin, coupled with their integrity, drive for excellence and customer service make the merger a homerun."
Since the existing Wilshire communities do not compete directly with the MHI brands, no layoffs in the sales and construction teams are anticipated.
About McGuyer Homebuilders, Inc. (MHI)
Established in 1988, MHI is a privately held homebuilder building in five major Texas markets including Austin, Dallas, Fort Worth, Houston and San Antonio. MHI was founded by Frank McGuyer in Houston and expanded to Austin in 1992 and San Antonio a year later. Through its signature brands – Plantation Homes, Coventry Homes, Pioneer Homes and Carmel Builders – MHI exceeds customer expectations with quality service, construction, and value. MHI has helped more than 45,000 Texas families realize the dream of owning a new home. More than 98 percent of MHI's customers are willing to recommend the builder to their family and friends. MHI has consistently been ranked among the top 30 homebuilders in the nation and continues to lead the industry with its award-winning designs. www.McGuyerHomebuilders.com
About Wilshire Homes:
Wilshire Homes uses its innovative Built Around You program to distinguish itself from other homebuilders in the market. While other builders offer limited "pre-packaged" options on their homes, Wilshire homeowners enjoy the personalization of a custom home, designed around the buyer's unique needs and wants, with the affordability they would get from a production homebuilding company. Wilshire Homes is based in Austin, Texas and is Central Texas' largest private homebuilding company. The company builds in around 12 communities in the Austin and San Antonio areas and has helped thousands of Central Texans build homes. www.wilshire-homes.com
Contact: Elizabeth Christian
SOURCE MHI Central Texas, LLC