Mergers and acquisitions are set to be a big part of Irvine-based TRI Pointe Group Inc.’s (NYSE: TPH) growth plan going forward.
The largest homebuilder based in Orange County recently created a new position to spearhead this effort, promoting Mike McMillen to vice president of M&A.
The move to place “a more intentional focus on expansion” is part of the company’s 10-year growth plan, according to McMillen, previously vice president of land.
The company is no stranger to big-dollar buys; its $2.8 billion buy of multiple housing divisions of Weyerhaeuser Co. in 2014 vaulted the company—formed in 2009—to one of the larger homebuilders in the country; it’s now among the country’s top 10 builders by revenue, it said.
“We want to expand that in new markets and diversify our portfolio, making us more profitable in the long term,” McMillen said.
New Ground
Expansion will include growth in existing markets, such as the Carolinas, Texas and California, as well as eyeing opportunities “in primary targets in the Southeast region and the West.”
The company has a market valuation of nearly $2 billion and currently operates in nine states.
About a year ago, TRI Pointe established offices in Charlotte and Raleigh, its first locations in the Carolinas.
Last December, the firm paid about $60 million for Dallas-based Dunhill Homes and its affiliated business Nathan Carlisle Homes, which makes homes for buyers 55 and older. It was its first buy in Texas.
These new divisions “demonstrated our commitment to continued geographic diversity and opportunistic growth,” chief executive Doug Bauer said in a statement. “Leveraging the ‘best of big and small’ approach with the thought leadership, scale and resources of TRI Pointe Group, combined with the nimble local expertise and relationships of our regional homebuilders, is integral to our strategy.”
Plotting Plans
“First and foremost, the goal is to identify companies that are aligned with our brand, and have a strong presence in the local market,” McMillen said.
It could take upward of a year prior to company making any M&A deals, he said.
McMillen first joined TRI Pointe in 2011 after working for other homebuilders, including Newport Beach’s William Lyon Homes (NYSE: WLH) and L.A.-based KB Home (NYSE: KBH).
