Philadelphia-based JTW Advisors LLC announced that Stanley Martin Communities, LLC will acquire Essex Homes in a deal expected to close in February 2020, creating one of the top 25 builders in America. JTW Advisors, a mergers and acquisitions advisory firm focused exclusively on the homebuilding industry, served as the exclusive financial advisor to Essex Homes in their sale to Stanley Martin Homes.
“The acquisition of Essex Homes by Stanley Martin Homes combines two of the largest Southeastern homebuilders into one of the top 25 builders in the United States,” said JTW Advisors Managing Partner Chris Jasinski. “As a financial advisor focused on mergers and acquisitions in the homebuilding industry, we were able to target the unique needs, objectives and concerns of Essex Homes and Stanley Martin Homes. Through this strategic acquisition, Stanley Martin’s geographic footprint will expand into five new markets with a seasoned team and a pipeline of over 8,000 controlled lots.”
The acquisition will combine two of the largest homebuilders in the southeastern United States with homebuilding operations in Maryland, Virginia, North Carolina, South Carolina and Georgia. For the 12-month period, ending December 31, 2019, Essex closed 853 homes and controlled 8,332 lots, while Stanley Martin closed 1,774 homes and controlled 14,917 lots. Karl Haslinger, founder, owner and CEO of Essex Homes, will join Stanley Martin as Regional Vice President and continue to manage operations in former Essex Homes markets of Augusta / Aiken, SC; Charlotte, NC; Columbia, SC; Greenville, SC; and Wilmington, NC.
“Preserving values and culture for the Essex Homes team was of paramount importance as we sought a buyer. JTW Advisors understood our priorities and found an excellent match in Stanley Martin Homes, and carried us through the acquisition process seamlessly,” said Essex Homes President and CEO Karl Haslinger.
Factors that contribute to the growth in mergers and acquisitions in the homebuilding industry include access to new markets, acquisition of land, and gaining talented executives and employees in a tight labor market.