Landsea Homes Corp. completed the acquisition of Hanover Family Builders (HFB), an Orlando-based builder, for a purchase price of $179.3 million, subject to certain post-closing adjustments plus the assumption of debt of approximately $69.3 million, which was refinanced with the company's unsecured revolving credit facility.
Last year, HFB closed 632 homes at an average selling price of $328,323 and ended 2021 with more than 4,100 lots under control, 469 homes in backlog worth more than $200 million, and 18 active communities.
“In 2021, Landsea Homes surpassed the milestone of $1 billion in revenues and completed our first year as a public company. We believe our acquisition of Hanover Family Builders is another truly transformative event for the company,” says Landsea Homes CEO John Ho. “With the closing of this transaction, we have increased our lots under control to more than 12,800 and further accelerated our asset-light strategy by increasing our controlled lots to approximately 50% of our total lot inventory.”
HFB, founded in 2017 by Matt, Steve, and Andrew Orosz and Colby Franks, began with nine communities in the Orlando region. The Orosz family previously formed Cambridge Homes in the 1990s before selling the company in 2005 and created Royal Oak Homes in 2011, which sold in 2014. Builder Advisor Group represented Hanover Family Builders as its broker in the transaction.
“Hanover Family Builders has established a great reputation for providing wonderful homes and outstanding customer service across central Florida,” Ho says. “Given their strong track record, local market knowledge, and long-standing relationships, we believe that Hanover will play an integral role as we expand in this region.”
Landsea Homes first entered the Florida housing market in 2021 with the acquisition of Vintage Estate Homes. With that purchase, Landsea Homes began providing homes in the Orlando area, including Palm Bay, Palm Coast, Ormond Beach, Lake Helen, Sorrento, Merritt Island, and DeBary.
“We were very impressed with Landsea Homes’ strategic approach and commitment to building great homes with top-tier customer service—values that closely align with ours,” says HFB co-president Steve Orosz. “Their senior leadership team is experienced and thoughtful, and they have created a culture of integrity that is dedicated to ensuring they provide best-in-class homes in each of their markets.”
Ho says that HFB’s focus on the more affordable segments of the market “aligns strongly with our broader product positioning goals.” The acquisition of HFB is expected to have an immediate impact on Landsea Homes’ earnings, and Ho says the deal will drive the company’s return “on beginning equity to exceed 20% in the fiscal year 2022 and beyond.”
“Our mission is to create a best-in-class home building company that focuses on delivering high-quality homes at a great value to our customers, while providing superior customer service,” Ho says. “Hanover Family Builders fits perfectly into that mission, and we are excited to welcome them into the Landsea Homes family.”
Since its formation eight years ago, Landsea Homes has grown its presence in each of its key markets, including Arizona, Northern and Southern California, Texas, and Florida.
