Dive Brief:
- Tennessee-based Clayton Homes — a builder of manufactured homes and a subsidiary of Warren Buffett’s Berkshire Hathaway, Inc. — has purchased Georgia residential homebuilder Chafin Communities for almost $50 million, the Atlanta Business Chronicle reported.
- Clayton will receive 1,100 lots for the $50 million, and Chafin founders Eric and Daryl Chafin will continue to run operations. However, all of Chafin’s employees will join Clayton Homes.
- Chafin builds primarily in northeast Atlanta — in Gwinnett, Forsyth and Hall counties.
Dive Insight:
Albeit on a smaller scale, this is the latest move toward consolidation in the homebuilding industry. This year has seen industry giants Standard Pacific and The Ryland Group merge and create a $5.2 billion behemoth — now the fourth largest homebuilder in the U.S. Taylor Morrison was next, with its $166 million acquisition of approximately half of Orleans Homebuilders' portfolio.
And last week, M/I Homes, Inc., paid an undisclosed amount of cash for Minneapolis-based Hans Hagen Homes, Inc., a homebuilding stalwart in the Twin Cities area.
Consolidation helps homebuilders extend their geographical reach, attract investors and achieve land purchasing power.
