Mattamy to Purchase Monarch in the New Year
By Lucas on Dec 16, 2014
On December 16, 2014, Mattamy Homes announced that they are purchasing Monarch Corporation, the Canadian division of US builder Taylor Morrison Home Corporation. The purchase price will be determined by Monarch’s December 31, 2014 balance sheet, but is estimated to be around CAD$330 million. The deal is expected to officially close in the first quarter of 2015.
What does Monarch have that Mattamy doesn’t? A high-rise division. So, consider this acquisition Mattamy’s entrance into the condo game.
"Monarch is a leading builder in Ontario, with an exceptional reputation and portfolio of assets," says Peter Gilgan, Founder & CEO of Mattamy in the press release issued yesterday. "The addition of the business to Mattamy Homes aligns well with our growth strategy, and we look forward to working with the talented Monarch team as we enhance our already significant footprint in Ontario and enter into the high-rise market."
St. John's Forest - via Mattamy Homes
Mattamy is prolific in Canada and the US, and has built well over 70,000 homes throughout hundreds of communities. This extensive portfolio makes them one of the largest builders in North America. Mattamy can already be found in hot low-rise markets across the Greater Toronto Area, from Brampton to Aurora, and now that Monarch’s developments are being added to the pot, we’ll surely start seeing Mattamy hoarding in large urban centres like downtown Toronto.
"This is an exciting time for Mattamy as well as Brad Carr, our Canadian President, and me," says Brian Johnston, Chief Operating Officer of Mattamy Homes. "We both spent our formative years at Monarch and expect the deal to provide valuable synergies to Mattamy. I would highlight that this acquisition, in one stroke, puts us in the high-rise business in a significant way. High-rise represents more than 50% of new home sales in the Greater Toronto Area and so is a major positive to this transaction."
We’re looking forward to seeing how Mattamy impacts Toronto’s condo market. We’ll be keeping our eye out for the first new Mattamy condo to launch in the Greater Toronto Area!
