Berkshire Hathaway unit buys Prudential Fox & Roach Realtors
Prudential Fox & Roach Realtors, one of the nation's largest independent real estate brokerage companies, said Wednesday that it had been acquired by HomeServices of America Inc., an affiliate of Warren Buffett's Berkshire Hathaway.
Prudential Fox & Roach Realtors, one of the nation's largest independent real estate brokerage companies, said Wednesday that it had been acquired by HomeServices of America Inc., an affiliate of Warren Buffett's Berkshire Hathaway.
Prudential Fox & Roach, with corporate headquarters in Devon, declined to disclose terms of the acquisition. The company has 62 offices and 4,000 sales associates in Pennsylvania, New Jersey, and Delaware. Its Trident Group subsidiary originates mortgages, sells property and casualty insurance, and offers title and escrow services.
In 2012, the brokerage had more than 25,000 transactions and a sales volume of $8.3 billion, according to a news release about the acquisition. Trident originated 9,800 home mortgages, or $2.4 billion, last year.
The corporate leadership - Larry Flick, chairman and CEO; Gerry Griesser, president of Trident; and Joan Docktor, president of Prudential Fox & Roach - will remain in place.
Prudential Fox & Roach will keep its name until fall, when it becomes a branded franchise of HomeServices of America.
The acquisition is HomeServices' entry into the mid-Atlantic market. The Minneapolis-based firm has more than 21,000 real estate professionals operating in 24 states.
In 2012, HomeServices associates facilitated nearly $53 billion in residential real estate sales, nearly 186,000 transactions, and nearly 153,000 mortgage, insurance, title and escrow transactions, the news release said.
On Wednesday, Prudential Fox & Roach held meetings with associates. Those contacted said they did not anticipate any changes with the current leadership remaining in place, nor did they expect the loss of top-selling agents because of the acquisition.
"Anything associated with Warren Buffett is a plus," said Center City agent Mary Genovese, adding that the deal would give the company "a more worldwide presence."
Nicole Milazzo, a spokeswoman for major regional firm Weichert Realtors, said it was corporate policy not to comment on its competitors.
Prudential Fox & Roach began life in April 1995 with the merger of Roach Bros. of Devon and Emlen Wheeler of Philadelphia.
In December 1997, Roach Wheeler merged with Fox & Lazo of Haddonfield to become Fox & Roach, which opened up the South Jersey market to what was still a Main Line/Northwest Philadelphia company.
In February 1999, Fox & Roach acquired Prudential Preferred Properties, which sold primarily in the city and on the Main Line, creating the present company, the largest independent brokerage in the Philadelphia region, including Mercer and New Castle Counties.
In 1998, the two firms' combined revenue from sales and financial services was $10 billion.