Dive Brief:
- The home-building market in California is consolidating, with Toll brothers acquiring builder Shapell Industries Inc. in a cash deal for about $1.6 billion.
- Shapell has about 5,200 home sites in the San Francisco Bay area, metropolitan Los Angeles, Orange County and Carlsbad, and that will more than double Toll Brothers' inventory.
- Shapell's average home price this year is $791,000, while Toll Brothers' homes in its nine costal markets average $1 million.
Dive Insight:
The sale spells the end of a family business in single-family homes that began in 1955. The Shapell family is keeping its construction business for commercial and retail buildings and multifamily homes.
