United Homes Group Announces Acquisition of Homebuilding Business of Creekside Custom Homes
- None.
- None.
The acquisition of Creekside Custom Homes by United Homes Group represents a strategic expansion within the Southeastern homebuilding market, particularly in Myrtle Beach, which is experiencing rapid growth. This move is indicative of UHG's commitment to a land-light strategy, which typically involves controlling smaller land inventories to reduce holding costs and risk, while still maintaining the ability to respond quickly to market demands. The merger is expected to nearly double UHG's presence in the region, potentially increasing market share and operational synergies. The integration of Creekside's team and assets should enable UHG to leverage existing local expertise and relationships, which can be critical in land acquisition and development.
For stakeholders, the short-term benefits include potential operational efficiencies and cost savings due to economies of scale. In the long-term, the enhanced market position and increased lot control could lead to sustainable growth, particularly as the Myrtle Beach area continues to attract new residents due to its affordability and quality of life. However, the success of this acquisition will depend on the effective integration of the two businesses and the continued health of the housing market in the region.
From a financial perspective, the acquisition could be seen as a move to strengthen UHG's balance sheet by expanding its revenue base and diversifying its assets. The financial terms of the acquisition have not been disclosed, but the deal may involve a significant capital outlay which could affect UHG's short-term liquidity. However, if financed prudently, the acquisition could lead to improved financial ratios and profitability in the medium to long term.
Investors will be interested in the potential for increased earnings per share and return on investment, especially if UHG can capitalize on the growing Myrtle Beach market. They will also be monitoring the integration process closely, as successful mergers can lead to significant cost savings and revenue synergies, whereas poorly managed integrations can result in financial strain and loss of value.
The involvement of Jamie McLain, with his extensive local experience in building and land development, is a strategic asset for UHG in navigating the complexities of the coastal South Carolina real estate market. McLain's role as Coastal Division Land Manager could provide valuable insights into local zoning laws, construction regulations and community planning, which are essential for successful land development and homebuilding operations.
Furthermore, the acquisition aligns with UHG's strategic vision of growth through selective mergers, as seen with their previous acquisitions. By consolidating their position in the market, UHG is likely to benefit from a stronger brand presence and the ability to influence market trends. The success of this strategy will hinge on their capacity to maintain the quality of the homes built and to continue to meet the evolving needs of the Myrtle Beach community.
“The Creekside acquisition nearly doubles our presence in the fast-growing
Jamie McLain, owner of Creekside, will stay on as the Coastal Division Land Manager of UHG’s associated land developer, and the Creekside team will join Great Southern Homes’ Coastal division. Born and raised in
“The acquisition of Creekside meaningfully improves our market share in the Coastal South Carolina market and is consistent with our strategic vision following the acquisition of the Herring Homes team in August and Rosewood Communities in October,” said Jack Micenko, President of UHG. “Jamie and his team have a proven track record in identifying and developing successful communities in-market, and by partnering together we expect to accelerate growth at the Coast in coming years.”
About United Homes Group, Inc.
UHG is a publicly traded residential builder headquartered in
Forward-Looking Statements
Certain statements contained in this release, other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “seek,” “continue,” or other similar words.
Any such forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of, and assumptions made by, our management and involve uncertainties that could significantly affect our results. Such statements include, but are not limited to, statements about our future financial performance, strategy, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and are not intended to be a guarantee of our performance in future periods. We cannot guarantee the accuracy of any such forward-looking statements contained in this release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
For further information regarding risks and uncertainties associated with our business, and important factors that could cause our actual results to vary materially from those expressed or implied in such forward-looking statements, please refer to the factors listed and described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the “Risk Factors” sections of the documents we file from time to time with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240129056708/en/
Investor Relations Contact:
Drew Mackintosh
drew@mackintoshir.com
Mobile: 310-924-9036
Source: United Homes Group, Inc.
FAQ
What company has acquired Creekside Custom Homes, LLC?
What is the ticker symbol for United Homes Group, Inc.?
Who will stay on as the Coastal Division Land Manager of UHG's associated land developer?
What is the strategic vision of UHG following the acquisition of Creekside Custom Homes, LLC?
