Scottsdale developer, builder to purchase Bonterra Builders

Scottsdale developer and builder of active adult and conventional home communities in Florida, Arizona and the Carolinas, today announced that it has agreed to acquire the home building assets of North Carolina-based Bonterra Builders LLC, for an aggregate purchase price of approximately $96 million in cash, subject to customary adjustments.

Bonterra Builders is a recognized homebuilding leader in the Greater Charlotte market, with a commitment to building exceptional homes in outstanding communities. Focused primarily on the move-up buyer, Bonterra Builders has experienced strong growth, while earning a
reputation for outstanding quality and customer service. Bonterra Builders has over 30 active communities and closed more than 300 homes in 2014.

The transaction will establish AV Homes as one of the largest homebuilders in the Greater Charlotte, North Carolina market and will complement its growing presence in the market, according to a press release. With nearly 1,700 primary residential lots owned or controlled, Bonterra Builders enhances AV Homes’ position in a key growth market.

 “We are very pleased to announce this strategic acquisition for AV Homes. The transaction with Bonterra Builders establishes a strong platform in the Carolinas and further achieves the Company’s strategic goal of expanding its operations into attractive markets with strong economic fundamentals. We expect this acquisition to drive meaningful top-line revenue growth for the company, improve our SG&A leverage, and be accretive on an earnings basis to our shareholders,” AV Homes President and CEO, Roger A. Cregg stated in a press release.

Mr. Cregg added, “The combination of the talented and well-respected Bonterra Builders management team, their strong local relationships and their desirable land positions will enhance and accelerate our earnings growth.”

Bonterra Builders President, Darren Sutton, will continue to run the operations for AV Homes under the Bonterra Builders brand with no immediate changes to the operations, according to the press release.

“This is a wonderful opportunity for our company and our employees,” stated Darren Sutton in the release. “We look
forward to joining the team at AV Homes and working together as one of the leading homebuilders in the Greater Charlotte marketplace.”

The acquisition will be funded by cash on hand and AV Homes’ revolving credit facility. The transaction has been approved by the AV Homes
Board and is expected to close in July 2015, subject to customary closing conditions and AV Homes’ completion of third party financing in order to extend its debt maturities and support its growth strategy, according to the release.

An Investor Presentation containing further details regarding Bonterra Builders and the transaction can be found on the AV Homes website at

The Scottsdale Independent is published monthly and mailed to 75,000 homes and businesses in Scottsdale.

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