Atlanta Business Chronicle
Century Communities Inc. (NYSE: CCS), the No. 2 homebuilder in metro Atlanta, said today it will merge with builder UCP Inc. (NYSE: UCP) in a deal valued at $336 million, including the payment of certain indebtedness.
The combined company will be in 10 states, 17 markets and 117 communities, with revenues of more than $1.3 billion.
Colorado-based Century Communities is metro Atlanta's No. 2 homebuilder (after No. 1 D.R. Horton Inc.), according to Atlanta Business Chronicle's Book of Lists. Atlanta is Century Communities' largest market, with 1,265 homes sold in 2016, the company reported. The average sales price of Century's homes sold in Atlanta in 2016 was $271,300. The company's home sales revenue in Atlanta was $343.1 million in 2016.
California-based UCP operates in the States of California, Washington, North Carolina, South Carolina and Tennessee.
Century said the deal will create a geographically diverse portfolio with essentially no overlap. The combined company portfolio will consist of lots and communities in California, Colorado, Georgia, Nevada, North Carolina, South Carolina, Tennessee, Texas, Utah and Washington. "The combination provides for an expanded, national footprint across high-growth markets, which we believe enhances growth prospects while mitigating risks against any potential price and value uncertainties in regional homebuilding markets," Century said.
"UCP’s highly complementary land positions combined with Century’s existing portfolio creates a diverse national growth platform and footprint,” said Dale Francescon, co-CEO of Century, in a statement.
Century Communities entered the Atlanta market in November 2014 through the $57 million acquisition of Peachtree Communities Group Inc.