SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 28, 2015--
Taylor Morrison Home Corporation (NYSE:TMHC) (“Taylor Morrison”) today
announced that it closed the previously announced sale of Monarch
Corporation, formerly its Canadian operations, to an affiliate of
Mattamy Homes Limited (“Mattamy”). Mattamy delivered a cash purchase
price of CAD $335 million at closing, which is subject to customary
post-closing adjustments. Immediately prior to the closing,
approximately CAD $235 million of cash at Monarch Corporation was
distributed to a subsidiary of Taylor Morrison for total proceeds of CAD
$570 million.
“We are pleased to announce the completion of the sale of Monarch
Corporation,” said Taylor Morrison President and CEO Sheryl Palmer. “We
appreciate the contributions made by our Canadian team for many years to
the business, as they were an instrumental part of the Taylor Morrison
portfolio. Our relationship with such talented professionals will be
greatly missed. However, now is the right time to emphasize future
growth in the U.S., where we believe fundamentals of recovery are
strong. This sale provides us with a strengthened balance sheet as well
as a management team focused on a wholly U.S. business, giving us an
increased capacity, from both a financial and operational perspective to
invest strategically in core locations within the U.S.”
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. markets. Taylor Morrison will continue to focus
on its four pillar strategy, which consists of opportunistically
acquiring prime land assets in core locations, where buyers demand to
live while maintaining continued attention on overhead efficiency and
optimization of 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.
About Taylor Morrison
Taylor Morrison Home Corporation (NYSE:TMHC) is a leading national
builder and developer based in Scottsdale, Arizona and operates under
two well-established brands, Taylor Morrison and Darling Homes. Taylor
Morrison builds and develops distinctive communities from coast to
coast, serving a wide array of homeowners and aimed mainly at
first-time, move-up, luxury and 55 or better customers. Darling Homes
builds communities in Texas, catering to move-up and luxury homebuyers
seeking a personalized building experience.
For more information about Taylor Morrison and Darling Homes please
visit www.taylormorrison.com
or www.darlinghomes.com.
Forward-Looking Statements
Statements contained in, or incorporated by reference into, this press
release, future filings by us with the Securities and Exchange
Commission, 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