Stanley Martin Homes—the 2021 Builder of the Year—has announced that it has entered into an agreement to acquire all of the home building assets and operations of Avex Homes in Central Florida.
The assets include over 300 homes under construction and more than 4,400 controlled lots in the Orlando, Tampa, and Daytona markets. The transaction is expected to close this month.
“We’re excited,” says Steve Alloy, president and CEO of Stanley Martin, adding that the deal was really “all about the people. We have strategically been working to enter the Florida market for several years. When we first met the leaders of Avex Homes, we immediately recognized what a great fit they would be with Stanley Martin.”
Earlier this year—before talks began with Avex—Alloy told BUILDER there was no specific wish list of markets where Stanley Martin wanted to be next. Given the firm’s significant presence in the Southeast, however, he did point out that it “made no sense” that the firm wasn’t in Florida, but that now changes with this acquisition.
“We selected Stanley Martin as our acquisition partner among many compelling offers because of its track record of successful acquisitions, experienced leadership, and strong financial performance,” says Beat Kahli, the CEO of Sitex Properties USA, the largest shareholder of Avex Homes.
Paul, Weiss, Rifkind, Wharton & Garrison in New York and Dean Mead in Orlando, Florida, both provided legal representation for Stanley Martin. Watson Sloane represented the sellers. Builder Advisor Group (BAG) served as exclusive M&A adviser to Avex Homes in the transaction; this deal is the ninth home builder M&A transaction by BAG in 2021.
Going forward, Stanley Martin is budgeting for one acquisition per year as part of its growth plan; the Avex deal follows the February 2020 acquisition of Columbia, South Carolina–based Essex Homes.
“We have been building high-quality homes in Central Florida since 2012, and we have successfully grown each year,” says Eric Marks, president of Avex Homes. “Our plan is to continue our expansion by combining our local experience with the resources of Stanley Martin. It is an exciting announcement for our team members, and I am looking forward to a successful future as a part of Stanley Martin.”
