The acquisition marks M/I Homes' entry into the San Antonio market and a continued expansion of M/I Homes' operations in Texas. M/I Homes entered the Houston market last year.
TriStone Homes delivered 119 homes in 2010, with an average selling price of $186,000. Founded by David Matlock, TriStone sells new homes for first-time and move-up home buyers throughout the San Antonio area, with homes priced from $140,000 to over $250,000, and operates with a strategy of offering home buyers a high level of personal service and well-built homes designed to fit varying lifestyles and budgets.
"TriStone Homes, led by Dave Matlock, has an excellent reputation as a builder of high quality homes, and we are excited to expand into San Antonio by merging the operations of TriStone into our company," said Robert H. Schottenstein, CEO and president of M/I Homes. "We believe this acquisition represents a great strategic fit for M/I Homes and further enhances our geographic diversification with an established organization in a dynamic, growing housing market. Dave has more than 20 years of experience in the home building industry and will join M/I Homes as San Antonio Area president."
The acquisition of TriStone Homes is anticipated to have a minimal impact on M/I Homes' cash balance and leverage. At December 31, 2010, M/I Homes, Inc. had a cash balance of $123 million, a ratio of net debt to capitalization of 34 percent, and no balance outstanding under the company's $140 million revolving credit agreement. TriStone Homes was represented in the transaction by Avila Advisors.