HomeServices of America, Inc., the fast-growing parent company of Edina Realty, said Wednesday that it is expanding in the eastern United States through the acquisition of a large Philadelphia-based brokerage.
Homeservices, a subsidiary of Warren Buffett’s Berkshire Hathaway, bills itself as the second-largest full-service residential real estate brokerage firm in the United States. The latest purchase in an ongoing acquisition spree is Prudential Fox & Roach, Realtors, which Homeservices described as the fifth-largest provider of brokerage services in the country.
Financial terms of the acquisition were not disclosed.
As the largest realtor in the tri-state region of Pennsylvania, New Jersey, and Delaware, Prudential Fox & Roach has more than 4,000 sales associates in 62 offices located in major markets across the three states, Homeservices said. The move marks Homeservices’ first expansion into the area.
In 2012, Prudential Fox & Roach had more than $8.3 billion in sales through nearly 25,000 transactions; its Trident Group subsidiary originated $2.4 billion, according to Homeservices.
Prudential Fox & Roach will retain its name until later this fall, when it will transition to the new Berkshire Hathaway HomeServices franchise brand.
Including the latest deal, Homeservices now has 30 brands and more than 21,000 real estate professionals operating in 24 states. Last year, it facilitated nearly $53 billion in residential real estate sales and nearly 186,000 transactions, the company said.
While Homeservices has been on an acquisition spree, the deal for Prudential Fox & Roach is its largest to date, according to a Star Tribune report.
HomeServices Chairman and CEO Ron Peltier, who was recently inducted into Twin Cities Business’ Minnesota Business Hall of Fame, said in a statement that Prudential Fox & Roach “has become one of the foremost real estate and financial services companies in the United States, renowned for its innovation, agility, and unwavering commitment to delivering an exceptional customer experience.”
Throughout its string of recent acquisitions, Homeservices has taken a hands-off approach, focusing on buying leaders in various markets and then helping them grow in those markets. In keeping with that philosophy, few changes are expected to leadership and daily operations of Prudential Fox & Roach, the Star Tribune reported.