Columbia-based Richmond American Homes of Tennessee Inc. has agreed to acquire the assets of Franklin-based The Jones Company of Tennessee.
According to a statement, the terms of the agreement are not disclosed.
Denver-based construction company MDC Holdings Inc., of which Richmond American is a subsidiary, expects the deal to close late in the second quarter, with the purchase expected to add about 10 communities, 1,700 lots and 150 residential units on standby at Richmond American operations. The transaction is subject to the approval of MDC’s Board of Directors and customary conditions.
Jones, of which Ken Stricker is CEO, completed the purchase of 370 homes in 2021 in the Nashville area, with an average sale price of $564,000 and generating revenue of approximately $209 million.
Whelan Advisory Capital Markets is acting as exclusive M&A advisor to Jones in connection with the transaction.
“The Jones team has built a tremendous homebuilding organization in Nashville over the past three decades,” David Mandarich, MDC’s president and CEO, said in the release. “We believe this transaction, combined with the organic soil pipeline we have secured since inception in Nashville approximately 12 months ago, has the potential to propel Richmond American into a leadership position in the Nashville market.”
Stricker, Howard Chilcutt and Bob Jones ran Jones, founded in 1927, more recently.
In 2003, Centex Homes purchased the St. Louis division of The Jones Company from several shareholders. In 2005, Chilcutt founded Consort Homes in St. Louis. Stricker, who was former president of The Jones Company in St. Louis, is now CEO of Consort Homes in St. Louis and The Jones Company of Tennessee in Nashville.
Richmond American Homes of Tennessee Inc. was founded in 1972. MDC subsidiaries have homebuilding operations in Denver, Las Vegas, Phoenix, Los Angeles, San Diego, San Francisco Bay Area, Sacramento, Washington DC, Baltimore, Orlando, Jacksonville, Seattle, Portland, Boise, Austin, and Albuquerque, among others.
Subsidiaries provide mortgage financing, insurance and title services through HomeAmerican Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company, respectively.
MDC Holdings is listed on the New York Stock Exchange.