Reston, Virginia–based American Southern Homes—No. 111 on the 2020 Builder Next 100 list—has announced the closing of an asset purchase to acquire Dorn Homes—No. 144—and its affiliates for an undisclosed purchase price. Dorn is the third home builder to join the American Southern Homes company.
With this acquisition, American Southern Homes has added control of an additional 2,400 home sites and a platform to expand its operations in the Arizona market. The builder is projected to complete construction of over 900 homes in 2021. This partnership will provide Dorn with the additional capital necessary to continue growing in existing markets and expanding into new markets across Arizona.
“The acquisition of Dorn Homes provides us with a valuable five-year plus asset position in strong and growing markets,” says Greg Benson, president and COO of American Southern Homes. “We welcome David Grounds and his Dorn team as partners going forward.”
Grounds will continue in his role as CEO of Dorn Homes and is a welcomed adviser to American Southern Homes.
“We are delighted to join the American Southern Homes family of companies, and this partnership will position us to expand our capabilities and footprint into our current as well as new markets,” says Grounds.
Zelman & Associates served as the exclusive sell-side investment banker to Dorn Homes in the company sale.
“This is the first private builder acquisition of 2021, beginning what will likely be a very active year for private builder M&A,” says Anthony McGill, managing director, head of investment banking at Zelman. “This transaction provides American Southern Homes with a diverse product lineup serving the active-adult and move-up markets, in addition to Dorn’s experienced management team, great land positions, reputation for quality homes, and long-established local relationships.”