Mattamy Homes To Buy Taylor Morrison Home's Monarch Corp. - Quick Facts

(RTTNews) - Mattamy Homes Ltd. said it has entered into an agreement to purchase Monarch Corporation, the Canadian division of US home builder Taylor Morrison Home Corp. (TMHC). The net cash purchase price will be determined based on the December 31, 2014 Monarch balance sheet and certain agreed-upon adjustments. The purchase price is currently estimated to be approximately C$330 million, net of cash distributed to the vendor prior to close.

Taylor Morrison Home noted that Total proceeds to Taylor Morrison from the transaction are estimated to be over C$570 million, which includes approximately C$240 million in cash at Monarch.

Taylor Morrison said that the net proceeds of the transaction will be used for general corporate purposes, resulting in increased flexibility for Taylor Morrison to invest further in U.S. operations.

The deal is expected to formally close in the first quarter of 2015 and is subject to customary closing conditions, including approval by the Canadian Competition Bureau. Following closing of the transaction, Mattamy and Monarch will spend the following months evaluating how and to what extent the two organizations will be integrated, Mattamy Homes said.

The intent is to have made the necessary operational decisions by the beginning of Mattamy's 2016 fiscal year (June 1, 2015).