By Jill Ralph. On the heels of other acquisitions, Technical Olympic USA, the parent company of Engle Homes, has paid $30 million in cash for the assets (and more than 4,600 lots) of Boulder, Colo.-based James Co., the second largest townhome builder in the metro area. With the acquisition of the assets, Technical Olympic USA also has first rights to all future residential land acquired in the next two years by the former owner of the James Co. The idea behind the joint venture was to create a sense of "one-stop shopping" -- a builder who builds townhomes in the $140,000s and single-family detached homes priced at $500,000 or more.
Tony Mon, Technical Olympic USA president and CEO, says the acquisition is part of the company's plan. "This is part of our strategy to be a major player in the markets where we choose to compete. We don't want to be everywhere."
This won't be the first time the two companies have worked together; they jointly built communities in the metro area before they merged. Jim Postle, founder of the James Co. (1976), said the company wasn't on the market, but when an informal offer was made about five months ago, it just made sense.
Technical Olympic USA is poised to become the fifth-largest builder in the metro area -- Engle Homes was the seventh largest builder. Last year, Engle Homes closed on 461 homes, with a price point in the high $200,000s; James Co. built 310 units with an average selling price of $198,000.