Pulte to acquire Centex for $1.3B
Pulte Homes Inc. will acquire Centex Corp. in a $1.3 billion stock deal that includes $1.8 billion of debt.
Centex was the third-largest single-family home builder in Mecklenburg County last year, based on the number of permits granted.
The combined company will have a market capitalization of $4.1 billion. According to The Wall Street Journal, it will be the largest U.S. home builder by market capitalization and volume, beating out D.R. Horton Inc. (NYSE:DHI), the largest home builder by volume, with a market capitalization of $3.4 billion.
The merged firm also will have the strongest liquidity position among its peers, with more than $3.4 billion in cash.
The deal is slated to close in the third quarter.
“Combining these two industry leaders with proud legacies into one company puts us in an excellent position to navigate through the current housing downturn, poised to accelerate our return to profitability,” says Pulte Chief Executive Richard Dugas Jr faxless payday loan online. “The combination will also allow us to capitalize on the opportunities presented by the addition of Centex’s land positions to Pulte’s, including Centex’s sizable holdings in both Texas and the Carolinas, two areas that continue to exhibit strength in the face of today’s difficult housing market.”
Dallas-based Centex (NYSE:CTX) was granted 230 permits for single-family homes in Mecklenburg County last year. The permits were valued at $68.9 million, according to Homebuilders Association of Charlotte. The company’s Charlotte-area developments include Stone Creek Ranch, Ardrey Chase and Weddington Meadows.
Michigan-based Pulte (NYSE:PHM) ranked 24th out of 25 homebuilders based on the number of permits. The company had 15 permits valued at $4.5 million in 2007. Pulte is the developer of Baxter Village townhomes, Sun City Carolina Lakes and Belair at Carolina Lakes.