SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Dec. 16, 2014--
Taylor Morrison Home Corporation (NYSE:TMHC) (“Taylor Morrison”) today
announced that its subsidiary has entered into a definitive agreement to
sell Monarch Corporation, its Canadian operations, to an affiliate of
Mattamy Homes Limited for a cash purchase price to be determined based
on the December 31, 2014 Monarch balance sheet and certain agreed-upon
adjustments. The purchase price is currently estimated to be
approximately CAD $330 million, net of cash at Monarch. Total proceeds
to Taylor Morrison from the transaction are estimated to be over CAD
$570 million, which includes approximately CAD $240 million in cash at
Monarch. Actual purchase price and cash amounts will be determined using
the final December 31, 2014 balance sheet.
The transaction is subject to customary closing conditions, including
approval by the Canadian Competition Bureau, and is expected to
close in the first quarter of 2015.
The net proceeds of the transaction will be used for general corporate
purposes, resulting in increased flexibility for Taylor Morrison to
invest further in U.S. operations.
“We are pleased to announce the strategic sale of our Canadian
operations at a price that we believe reflects an attractive valuation
for our business at an opportunistic time,” said Taylor Morrison
President and CEO Sheryl Palmer. “The Canadian operations have been an
instrumental part of the Taylor Morrison portfolio and with changing
market dynamics, now is the right time to unify our focus on the U.S.
The sale will provide us with a strengthened balance sheet and increased
capacity to invest strategically in core locations within the U.S.,
where we are confident fundamentals of recovery are strong for future
growth.”
Following the transaction, Taylor Morrison will continue to focus on its
four pillar strategy, which consists of opportunistically acquiring
prime land assets in core locations, targeting mostly move-up buyers,
attention on overhead efficiency and optimizing profit and volume, in
order to maximize shareholder value. Taylor Morrison will also continue
to assess its capital allocation strategy to drive long-term shareholder
return.
Stikeman Elliott LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP
acted as legal advisors for Taylor Morrison.
Conference Call and Webcast
A public conference call and webcast to discuss the announcement and a
sales update will be held later today, December 16, 2014 at 1:00 p.m.
Eastern Time on our investor relations website at investors.taylormorrison.com
or at 1 (800) 446-2782 passcode: 3867 2539. A webcast replay will also
be available on the site.
About Taylor Morrison
Headquartered in Scottsdale, Arizona, Taylor Morrison Home Corporation
(NYSE:TMHC) operates in the U.S. under the Taylor Morrison and Darling
Homes brands and in Canada under the Monarch brand. Taylor Morrison is a
builder and developer of single-family detached and attached homes,
serving a wide array of customers including first-time, move-up,
luxury and 55+. Taylor Morrison divisions operate in Arizona,
California, Colorado, Florida and Texas. Darling Homes
serves move-up and luxury homebuyers in Texas. Monarch, Canada’s oldest
homebuilder, builds homes for first-time and move-up buyers in Toronto
and Ottawa as well as high rise condominiums in Toronto.
For more information about Taylor Morrison, Darling Homes or Monarch,
please visit www.taylormorrison.com,
www.darlinghomes.com
and www.monarchgroup.net.
Forward-Looking Statements
Statements contained in, or incorporated by reference into, this press
release, future filings by us with the Securities and Exchange
Commission (“SEC”), our press releases, and oral statements made by, or
with the approval of, our authorized personnel, includes
“forward-looking statements.” These statements are subject to a number
of risks, uncertainties and other factors that could cause our actual
results, performance, prospects or opportunities, as well as those of
the markets we serve or intend to serve, to differ materially from those
expressed in, or implied by, these statements. You can identify these
statements by the fact that they do not relate to matters of a strictly
factual or historical nature and generally discuss or relate to
forecasts, estimates or other expectations regarding future events.
Generally, the words “believe,” “expect,” “intend,” “estimate,”
“anticipate,” “project,” “may,” “can,” “could,” “might,” “will” and
similar expressions identify forward-looking statements, including
statements related to expected operating and performing results, planned
transactions, planned objectives of management, future developments or
conditions in the industries in which we participate and other trends,
developments and uncertainties that may affect our business in the
future.
Such risks, uncertainties and other factors include, among other things:
our ability to complete the transaction described in this press release
and risks associated with the transaction, including our ability to
comply with our transition service requirements; risks associated with
the transition of the Monarch business, including our ability to
complete the transition plan for the Monarch business in a satisfactory
manner and to manage the associated transition costs, our ability to
timely implement the transition plan in a manner that will positively
impact our financial condition and results of operations, the impact of
the transition plan and the recently announced future plans for the
Monarch brand on our relationships with our employees and our major
customers and vendors, and unanticipated expenses and charges that may
occur as a result of the transition plan; litigation risks, including
litigation regarding employment and worker’s compensation; our ability
to continue to have the necessary liquidity, through cash flows from
operations, may be adversely impacted by a number of factors, including
the level of our operating cash flows; interest rate changes and the
availability of mortgage financing; continued volatility in the debt and
equity markets; competition within the industries in which we operate;
the availability and cost of land and other raw materials used by us in
our homebuilding operations; the impact of any changes to our strategy
in responding to continuing adverse conditions in the industry,
including any changes regarding our land positions; the availability and
cost of insurance covering risks associated with our businesses;
shortages and the cost of labor; weather related slowdowns; slow growth
initiatives and/or local building moratoria; governmental regulation
directed at or affecting the housing market, the homebuilding industry
or construction activities; uncertainty in the mortgage lending
industry, including revisions to underwriting standards and repurchase
requirements associated with the sale of mortgage loans; the
interpretation of or changes to tax, labor and environmental laws;
economic changes nationally or in our local markets, including
inflation, deflation, changes in consumer confidence and preferences and
the state of the market for homes in general; legal or regulatory
proceedings or claims; required accounting changes; terrorist acts and
other acts of war; and other factors of national, regional and global
scale, including those of a political, economic, business and
competitive nature. We undertake no duty to update any forward-looking
statement, whether as a result of new information, future events or
changes in our expectations, except as required by applicable law. In
addition, other such risks and uncertainties may be found in Taylor
Morrison Home Corporation’s Annual Report on Form 10-K and subsequent
reports filed with the SEC under the heading “Risk Factors.”
Source: Taylor Morrison Home Corporation
Taylor Morrison Home Corporation
Erin Willis, (480) 734-2060
investor@taylormorrison.com