This article is from the Australian Property Journal archive
THE building sector has started the year with further consolidation and merger and acquisition activity, with Simonds Group buying out rival, Dennis Family Homes (DFH).
Simonds has paid $10 million for the company.
Simonds CEO David McKeown said the acquisition strongly aligns with Simonds’ strategy of continuing to be an industry leader in delivering affordable and high-quality homes.
“The acquisition more than doubles our current product portfolio and significantly expands our market reach which places us in a strong position to help meet the growing housing demand in the Victorian market and across Australia.
“In a time of increasing demand for accessible housing options, this acquisition enables us to scale up with a robust product line that meets the needs of first-time buyers, growing families, and downsizers alike,” he added.
“DFH and Simonds have similar operating structures and models and operate in similar geographies. The business of DFH is complementary to the current operations of Simonds and the Acquisition is consistent with Simonds’ strategic goal of strengthening its position as a leading Australian homebuilding provider,” he continued.
Established in 1982, DFH is a wholly owned member of the Dennis Family Group and has built 30,000 homes in over 40 years. The company generated FY24 revenue of $221.2 million.
McKeown said the Acquisition is highly complementary and will add significant scale to Simonds’ existing operations with ~500 jobs in the forward order book and ~300 additional jobs under construction.
This acquisition is expected to be earnings accretive by Q1 FY26.
Simonds acquisition adds to the M&A activity within the sector with Singapore’s Ho Bee Land recently launching a rival takeover bid for AVJennings.
HBL, which already has presence in Australia is looking to grow its exposure and is competing against private-equity firm Proprium Capital Partners and AVID Property Group.
AVID’s takeover bid is also part of its expansion in the residential property sector following the launch a new land lease communities business.
Meanwhile last year Japan’s Sumitomo Forestry bought out Metricon, the nation’s largest homebuilder to complement its existing investment, Henley Properties.
And Australian Property Journal reported that Hankyu Hanshin Properties has stepped into a 2,000-apartment project at Melrose Park in a joint venture with Sekisui House Australia, replacing local developer Payce.
