AV Homes announced that TPG Capital agreed to make a $135 million investment in the company at a price of $14.65 per share, representing 9.6% premium to to the closing price of AV Homes' common stock.
AV Homes will use the proceeds to accelerate the implementation of its strategic growth plan in its existing and new high-potential housing markets.
Roger A. Cregg, AV Homes’ president and CEO, said the investment will allow the company to pursue new investment opportunities in its core markets in line with the company’s long-term strategy.
"We’re delighted that a renowned global private investment firm such as TPG has confidence in our vision, and in our ability to execute that vision, as the housing industry continues its recovery," Cregg said.
He added, "It’s an exciting time for AV Homes and I am confident that the implementation of our plans will drive growth and deliver long-term value to our shareholders."
AV Homes currently operates in Arizona and Florida. The company develops active adult communities designed for people 55 years old and up.