Toll Brothers, Inc., (NYSE:TOL) said Monday it has acquired Coleman Homes in Boise, Idaho in an all-cash deal. The purchase price was not disclosed.
The deal is for "substantially all of the assets and operations of Coleman Real Estate Holdings LLC," including Coleman Homes, one of the largest home building companies in the Boise market.
Coleman Homes operates primarily in Ada and Canyon Counties and builds single-family homes ranging from first-time to luxury homes priced from $175,000 to $500,000. At the date of acquisition, the Company’s $40.8 million backlog consisted of 135 homes with an average price of $302,000.
The Coleman family has been in the home building business since 1972 and has a relationship with Toll Brothers dating back nearly two decades. In 1997, Toll Brothers purchased the Coleman family’s Las Vegas home building operation to enter that market. The Colemans, father Tom and son Thomas, began doing business in the Boise market in 2004, initially as land developers, later forming Coleman Homes in 2007. Since then, Coleman Homes has delivered more than 1,000 homes in the market. It has received various national awards from the home building industry for its website, sales offices and design studio.
Including the existing backlog, the assets acquired by Toll Brothers include approximately 1,400 lots owned and 350 lots controlled in Ada and Canyon Counties. The acquisition will increase Toll Brothers’ selling community count by approximately 13 communities as of the closing date.
Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated: "We are confident that the Colemans’ strong management platform, great land positions, and well-established relationships with Boise land sellers and subcontractors will be a winning formula. We see Boise as a growing yet underserved market, much like Reno, where we have had great success with the Toll Brothers brand, product and customer experience.”
Thomas Coleman, Jr., co-founder and president of Coleman Homes, stated: "Boise is a market with many opportunities. Based upon the shared history of our two companies, we are confident that Toll Brothers’ great brand and resources will enable us, together, to expand upon the success that Coleman Homes has already achieved. We look forward to an exciting future as a member of the Toll Brothers family.”
Yearley continued: “The acquisition of Coleman Homes will enable us to expand our new initiative of serving a slightly lower price point niche in the upscale market. We are already doing this successfully in Jacksonville and Orlando Florida, in certain communities in Northern Virginia, and in other local markets. With 22% of our homes already sold to households with at least one buyer 35 years or younger, we see this as an important strategic step in broadening our outreach to affluent millennials, as well as many other potential customers.”
Zelman Partners LLC acted as exclusive financial advisor to Coleman Homes.
Toll now operates in 20 states and Washington, D.C.
