Edina Realty Parent Buys CA Firm, On Acquisition Spree

Minneapolis-based residential brokerage firm HomeServices of America, which owns Edina Realty, announced Wednesday that it has acquired Fresno, California-based Guarantee Real Estate, another residential broker.
 
Financial terms of the deal were not disclosed.
 
HomeServices, which is a subsidiary of Warren Buffett’s Omaha, Nebraska-based conglomerate Berkshire Hathaway, has been on a buying spree lately, making at least five acquisitions last year and thus expanding its network of real estate agents to 21 states.
 
The latest acquisition expands its presence in California and marks its entry into the Fresno market. HomeServices already has a strong presence in the state through its Prudential California brokerage firm, which has more than 2,500 agents in 58 offices that serve southern California markets, including Santa Barbara, San Diego, Orange County, Los Angeles, and Ventura.
 
Guarantee has more than 400 real estate agents in 13 offices located in Fresno, Clovis, Prather, Shaver Lake, Reedley, Kingsburg, Dinuba, and Visalia. The company has been the dominant brokerage firm in central California for more than 20 years, HomeServices said. In 2011, Guarantee brokered the sale of more than 3,700 residential units collectively valued at $634 million. The company’s co-chairmen, Joan Eaton and Paul Gibson, and CEO J. Scott Leonard will remain in their current roles.
 
“They are a strong company with an excellent reputation in a growth market,” Ron Peltier, chairman and CEO of HomeServices, said in a statement. “This transaction aligns with our vision of acquiring distinguished companies in leading markets that share our core values.”
 
HomeServices in October bought a majority stake in two brokerage franchises, Prudential Real Estate and Real Living Real Estate, under a new brand called Berkshire Hathaway HomeServices. Earlier in 2012, it bought Connecticut-based Prudential Connecticut Realty, which at the time of the acquisition, had more than 1,400 sales associates in more than 50 offices. It also bought Branson, Missouri-based Tri-Lakes Realtors, Oregon-based Prudential Northwest Properties, and Seattle-based Prudential Northwest Realty Associates last year.
 
HomeServices now owns 27 brands and has a network of more than 16,000 real estate professionals throughout the country. In 2012, the company brokered nearly 145,000 home sales collectively valued at $42 billion. The company said its growth strategy focuses on acquiring “market-leading companies that have established deep and enduring reputations within their community.”