Texas Business reports: Austin—The assets of Austin-based Wilshire Homes have been acquired by MHI Central Texas LLC, an affiliate of McGuyer Homebuilders Inc. (MHI), a major private homebuilder that builds in all major Texas markets.
The combination of the two companies will create a builder that will sell, build and close more than 400 homes in 2011 with projected sales revenues in excess of $120 million in the Austin and San Antonio markets.
The combined entity will continue the use of the current MHI brand names– Coventry Homes and Plantation Homes – with the inclusion of the Wilshire Homes brand in Austin and San Antonio.
Wilshire sells in 12 communities and MHI sells in an additional 19 communities in the Austin and San Antonio markets.
“We are extremely proud of the brand we've built here in Central Texas and are looking forward to even greater success with the new company,” said Wilshire chief executive Ed Horne in a prepared statement.
Horne will join the new venture as senior vice president.
“MHI has been looking for an opportunity to grow our business in Austin and San Antonio for some time," said MHI president Gary Tesch said in a statement. “An acquisition of an existing company with a stellar reputation was our best option for both growth and profitability. In addition, Ed Horne and the other members of Wilshire's management team have deep roots in Central Texas. We knew we could build on the company's tradition of excellence and integrity.”
The new company plans to expand its operations to allow for the construction of more than 600 homes a year and $180 million in annual revenue by 2014.
Tesch said Wilshire Homes was acquired for several reasons, including:
The Wilshire lots in Central Texas complement MHI's existing operations.
Wilshire's price points were comparable to MHI's Plantation and Coventry brands.
MHI was impressed with Wilshire's “Build on Your Lot” program and felt that it could readily be expanded beyond Austin and San Antonio.
Horne and the late Nash Phillips began Wilshire Homes in 1991 and expanded to San Antonio in 1996.
Primary lenders for MHI Central Texas are expected to be the Royal Bank of Canada, Texas Capital Bank, International Bank of Commerce and Frost Bank.
Since the existing Wilshire communities do not compete directly with the MHI brands, no layoffs in the sales and construction teams are anticipated.
Established in 1988, MHI is a privately held homebuilder building in five major Texas markets including Austin, Dallas, Fort Worth, Houston and San Antonio. MHI was founded by Frank McGuyer in Houston and expanded to Austin in 1992 and San Antonio a year later.
Wilshire Homes is based in Austin, Texas and is Central Texas' largest private homebuilding company.