- M/I Homes, Inc., has announced its purchase of Minneapolis-based homebuilder Hans Hagen Homes, Inc., for an undisclosed purchase price paid in cash, and expects to close the deal before the end of the year, Builder Magazine reported.
- Hagen, according to Columbus Business First, had $42.8 million in revenue in 2014 and will be M/I's 14th housing division. Hagen has been building homes in the Minneapolis-St. Paul area for 50 years and is one of the top 10 homebuilders in the region.
- M/I's acquisition of Hagen is the latest event of the consolidation trend in the homebuilder market, kicked off by the Standard Pacific and Ryland merger earlier this year and followed by Taylor Morrison's acquisition of Orleans Homebuilders.
Standard Pacific Chief Executive Scott Stowell, at the time of the Ryland merger, said in an interview with The Wall Street Journal, "Industry insiders have often speculated about why there isn't more consolidation … among homebuilders." And it appears his statement could be prophetic.
Consolidation is a way for larger homebuilders to extend their geographical reach and, for the larger, publicly held builders to achieve purchasing power, as land for huge, moneymaking developments grows scarce.
Of the Hagen acquisition, M/I Homes CEO Robert H. Schottenstein said: "We are excited to expand into the Minneapolis-St. Paul market by acquiring the residential homebuilding operations of Hans Hagen Homes. The company has a strong reputation as a builder of high quality homes, and we are confident that we can build on that reputation and continue the company's long track record of success."