ATLANTA, Aug. 25, 2014 /PRNewswire/ -- PulteGroup, Inc. (NYSE: PHM) announced today that it has acquired the real estate assets of Dominion Homes, one of the largest builders in Columbus, Ohio, and Louisville, Ky. Dominion also maintains operations in Lexington, Ky. In 2013, Dominion delivered approximately 850 homes across its three markets and generated revenues of approximately $170 million. Financial terms for the transaction were not disclosed.
PulteGroup has initially acquired approximately 6,500 lots owned or under option and expects to purchase approximately 1,600 additional lots within the next 45 days upon completion of certain additional due diligence. The acquired Dominion assets, which serve entry-level and move-up buyers, include 27 open communities in Columbus, 11 open communities in Louisville and three open communities in Lexington.
"In purchasing Dominion's real estate portfolio, we acquired a number of well-located communities and immediately establish PulteGroup among the top builders in three new markets: Columbus, Louisville and Lexington, two of which are top 50 homebuilding markets in the US," said Richard J. Dugas, Jr., Chairman, President and Chief Executive Officer of PulteGroup. "Dominion's land pipeline expands our Midwest operations into three top metro markets, and gives us a great platform for further investment and growth. We are also pleased to have Dominion CEO Keith Tomlinson, a former Pulte employee, and his team join our organization as we deliver an exceptional consumer experience to homebuyers in these markets."
According to Bob O'Shaughnessy, Executive Vice President and Chief Financial Officer of PulteGroup, "We expect this transaction to be accretive to earnings and overall returns on invested capital, while recording little, if any, goodwill. Furthermore, PulteGroup's proven Value Creation platform positions us to generate operational improvements as we build out the acquired assets."
This press release includes "forward-looking statements." These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "may," "can," "could," "might," "will" and similar expressions identify forward-looking statements, including statements related to expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.
Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; continued volatility in the debt and equity markets; competition within the industries in which PulteGroup operates; the availability and cost of land and other raw materials used by PulteGroup in its homebuilding operations; the impact of any changes to our strategy in responding to the cyclical nature of the industry, including any changes regarding our land positions; the availability and cost of insurance covering risks associated with PulteGroup's businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans; the interpretation of or changes to tax, labor and environmental laws; economic changes nationally or in PulteGroup's local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; legal or regulatory proceedings or claims; required accounting changes; terrorist acts and other acts of war; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See PulteGroup's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, and other public filings with the Securities and Exchange Commission (the "SEC") for a further discussion of these and other risks and uncertainties applicable to our businesses. PulteGroup undertakes no duty to update any forward-looking statement, whether as a result of new information, future events or changes in PulteGroup's expectations.
PulteGroup, Inc. (NYSE: PHM), based in Atlanta, GA, is one of America's largest homebuilding companies with operations in approximately 50 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb and DiVosta Homes, the Company is one of the industry's most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup conducts extensive research to provide homebuyers with innovative solutions and consumer inspired homes and communities to make lives better.
SOURCE PulteGroup, Inc.