Taylor Morrison, the seventh-largest U.S. homebuilder by volume of sales, plans to start building in Chicago and two North Carolina markets after acquiring three divisions of 64th-ranked Orleans Homebuilders.
Scottsdale, AZ,-based Taylor Morrison announced the $166 million acquisition of approximately half of the Pennsylvania homebuilder’s portfolio on Tuesday. Orleans will retain ownership of its communities in Pennsylvania, New York and New Jersey.
The deal gives Taylor Morrison 2,100 home lots in the three markets — including Chicago, Raleigh and Charlotte, NC. The big builder’s operations have been concentrated in Arizona, California, Colorado, Florida and Texas. Late last year, the company sold its Canadian homebuilding operation, and shortly afterward, it acquired Atlanta builder JEH Homes.
The acquisition closed just a month after 11th-ranked Standard Pacific announced its $5.2 billion merger with No. 5 The Ryland Group. Industry observers have speculated that the pending merger would trip a flurry of consolidations among big builders, and especially among the public companies.
Orleans is just emerging from bankruptcy, during which it reverted from being publicly held to a private company.