Hans Hagen Homes, the ninth-largest homebuilder in the state and one of the biggest and oldest in the Twin Cities, has been bought by Ohio-based M/I Homes Inc.
Terms weren't disclosed. Owner Hans Hagen said that, after 50 years, he's ready for a more relaxed schedule and will focus on managing his commercial properties with his son.
"This is about its about planning for the future, as much for myself as for the employees," Hagen said. "I found a company that has the same attitude we do about our customers and employees, so we cut a deal."
M/I Homes is a newcomer to the Twin Cities and is one of the nation's largest homebuilders. The company focuses on single-family homes and has built more than 93,000 houses nationwide.
M/I Homes now operates in more than a dozen markets nationwide, including Columbus and Cincinnati, Ohio; Indianapolis and Chicago. The company also has an extensive presence along the eastern seaboard.
"We believe this acquisition represents an excellent strategic fit for M/I Homes and further enhances our geographic position with an established position in a healthy and dynamic housing market," Robert Schottenstein, the chief executive and president of M/I Homes, said in a statement.
In 2014, Hans Hagen delivered 122 homes worth $42.8 million with an average selling price of $351,000.
Hagen started the company five decades ago after acquiring a small local builder called Ban-Con from a Twin Cities developer named Ted Glasrud. Hagen estimates that he's built 3,000 to 3,500 houses during his career. He developed some of the region's most innovative subdivisions and also served in numerous leadership positions in local and national trade groups.
Hagen said he was first contacted by M/I about four years ago, but those talks were put on hold while the company pursued expansion into Texas.
Gary White, a Chicago homebuilding executive hired by M/I to oversee the Twin Cities operation, said he'll add about eight positions to the 35 now at Hans Hagen Homes.
"We plan on growing the business, but we want to maintain the high quality of construction that Hans Hagen established," White said.
David Siegel, executive director of the Builders Association of the Twin Cities, said the Twin Cities metro has approximately 15 to 25 mid-volume builders that build 50 to 100 homes per year. Although the largest builders in the Twin Cities are large-volume national companies, they represent only 35 to 40 percent of the metro market.
"That is a larger percentage than 15 years ago," Siegel said. "But I'm not sure this is a signifier of a big trend."