Region's top home builders consider merger
By Sam Spatter
Published: Wednesday, Dec. 5, 2012, 12:01 a.m.
Western Pennsylvania's two largest home builders may be close to merging, according to some local builders.
The deal would involve NVR Inc., parent company of Ryan Homes, acquiring Heartland Homes, according to the builders, who requested anonymity.
Neither Heartland nor NVR spokesmen responded to the Tribune-Review's requests for comments.
“I have heard rumors about the deal but I have not been in contact with either party to confirm it,” said Jeff Burd, president of Tall Timber Group, a Ross research and consulting firm for the construction industry.
The builders said Washington-based NVR and Heartland, based in Upper St. Clair, have discussed setting up a regional division, NVRHeartland, which would be operated by Heartland President Marty Gillespie. The division would remain in Pittsburgh.
Representatives from NVR on Tuesday were reviewing Heartland's books and talking to employees, builders said. Heartland employees learned about the merger plans a day earlier.
“There has been consolidation of home building companies, particularly those small companies that are having difficulty obtaining financing, although that's not a situation with Heartland,” said S. Murry Rust III, founder with Don Montgomery of home builder Montgomery Rust.
Ryan Homes has dominated the region's home building market for years. In 2011, it recorded 570 sales and through Nov. 25 of this year had 488 sales, according to RealStats, a South Side-based real estate information company.
Heartland had 286 sales in 2011 and 284 so far this year, RealStats said.
Dwight Schar, a one-time Ryan employee who founded NVHomes in 1980, acquired Ryan Homes in 1987. He helped Ryan expand to a multi-state builder, and was executive chairman of NVR until 2009, when he became chairman and left the company's daily operations.
A NVR-Heartland deal would reunite members of a home building family.
The late Edward Ryan founded Ryan Homes and his son-in-law, Gus Gillespie, once was president of Ryan's Pittsburgh region. After the NVR merger, Gillespie quit his 18-year career with Ryan and founded Heartland. In 2000, he convinced Gillespie to leave Eaton Corp. for Heartland.
Sam Spatter is a staff writer for Trib Total Media. He can be reached at 412-320-7843 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Corbett: Coal is working
- Drugmakers ready to carve out deals any way they can
- PNC’s CEO elected board chairman
- Mastech Holdings records 51 percent profit jump in 1st quarter
- ‘Old GM’ defense expected in court fight over faulty ignition switch
- Young visionaries at PieceMaker Technologies Inc. see future in 3-D
- Earthquakes could affect Beaver Valley nuke plant more than first thought
- AT&T joins crowded field with online video plans
- McDonald’s profit slips amid weak sales
- BNY Mellon notches $661M profit in 1st quarter
- Winning streak for stocks continues