Landsea Homes Acquires Hanover Family Builders

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The acquisition expands Landsea Homes’ portfolio by over 4,100 homesites, including 18 active selling communities and $200 million in the backlog.

Landsea Homes Corp. completed the purchase of Hanover Family Builders (HFB), an Orlando-based builder, for $179.3 million, subject to certain post-closing adjustments and the assumption of approximately $69.3 million in debt, which was refinanced with the company’s unsecured revolving credit facility.

HFB closed 632 homes last year at an average selling price of $328,323 and will end in 2021 with over 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,” Landsea Homes CEO John Ho stated.

“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, which was founded in 2017 by Matt, Steve, Andrew, and Colby Orosz, began with nine communities in the Orlando area.

The Orosz family previously founded Cambridge Homes in the 1990s before selling the company in 2005, and in 2011, they founded Royal Oak Homes, which they sold in 2014.

Hanover Family Builders was represented by Builder Advisor Group 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 said.

“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.”

With the acquisition of Vintage Estate Homes in 2021, Landsea Homes made its first foray into the Florida housing market.

Landsea Homes began providing homes in the Orlando area with that purchase, 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,” states 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 express 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 states 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,” said Ho.

“Hanover Family Builders fits perfectly into that mission, and we are excited to welcome them into the Landsea Homes family.”

Alex is one of our editors based out of Atlanta. He provides building and construction industry updates across mid to South Atlantic U.S.