Pulte Homes announced that it had acquired Sivage-Thomas Homes, headquartered in Albuquerque, N.M., in early July for an undisclosed purchase price paid in cash. Sivage-Thomas generated revenues of $152 million on closings of approximately 1,100 homes in the Phoenix and Albuquerque markets in 2002. It controls roughly 7,000 lots, spread across Phoenix, Albuquerque, and Tucson, with about 60 percent of those lots located in the Phoenix market.
"Given the land entitlement challenges that exist in Phoenix, these lots have tremendous value," says James Zeumer, Pulte Homes vice president of investor and corporate communications. "The acquisition gives us a great platform on which to build our presence in a new market [Albuquerque] and a new customer segment -- the first-time buyer in Phoenix. Also, many of the key field people with Sivage-Thomas will be staying on with the combined companies, which is a great knowledge base we can leverage."
Richard J. Dugas Jr., newly appointed president and CEO of Pulte Homes, notes that with an average selling price of approximately $142,000, Sivage-Thomas is focused on serving first-time buyers, a segment where Pulte, which operates in 44 markets in the United States, has had only a very small presence. Based on its 2002 closings, Sivage-Thomas ranks number 61 in Builder magazine's list of top 100 builders. The company is also the second largest builder in Albuquerque, which represents significant new market penetration for Pulte. Sivage-Thomas has a small presence in Tucson where Pulte already builds.
"In Pulte Homes, we team with the country's largest builder and one that shares our commitment to customer satisfaction and product quality," said Michael Sivage, CEO of Sivage-Thomas Homes.
In 2002, Pulte generated $7.512 billion in revenues on closings of 28,903 homes in the United States, as well as 7,547 homes outside the country.
Learn more about markets featured in this article: Phoenix, AZ.