Greenbaum Rowe Smith & Davis LLP

GRSRD&H Corporate Department Represents Hovnanian in Acquisition of Matzel & Mumford

In August, Alan E. Davis, chair of the Corporate Department, and Hal W. Mandel, Susan Okin Goldsmith and Jeffrey M. Shapiro, partner, of counsel and associate in the Department, respectively, represented Hovnanian Enterprises, Inc. (ASE-HOV) in the purchase of The Matzel & Mumford Organization, a privately held homebuilding company based in Hazlet, NJ. Hovnanian, headquartered in Red Bank, NJ, is the 14th largest homebuilder in America. Hovnanian provided Matzel & Mumford with a combination of more than $8 million worth of its Class A common stock and an undisclosed amount of cash.

Hovnanian designs, constructs and sells single-family homes, town homes and condominiums in planned residential communities throughout New Jersey and the United States, and also in Poland. Matzel & Mumford designs, constructs and markets new homes in New Jersey. Matzel & Mumford sold 287 homes in 1998, generating revenues of $117 million, while Hovnanian sold 2,530 homes at an average cost of $235,000.

Representing Matzel & Mumford were Pitney, Hardin, Kipp & Szuch attorneys Michael Zelenty, Glen Geiser and Keith Reilly. Also involved in the transaction were Peter Reinhart, Esq. and Michael Skea, Esq., General Counsel to Hovnanian and Matzel & Mumford, respectively, Simpson, Thatcher & Bartlett, securities counsel, and Sacks & Associates, a McLean, Virginia law firm.