Tue, Nov. 1, 9:59 AM
- Discussions about homebuilding M&A have been picking up of late, says analyst Will Randow, and he expects the next deal will likely be one public company acquiring another, rather than a smaller private player.
- "Aside from the normal benefits of M&A, we believe larger public builders may be more inclined to acquire the young (i.e. smaller public) given the slower paced recovery environment that exhibits lower pricing power," says Randow, who picks D.R. Horton (NYSE:DHI) as best-positioned to be a buyer.
- Other possible acquirers include: KB Home (NYSE:KBH), Meritage (NYSE:MTH), PulteGroup (NYSE:PHM), Toll Brothers (NYSE:TOL), and TRI Pointe (NYSE:TPH).
- Potential targets: Century Communities (NYSE:CCS), Green Brick Partners (NASDAQ:GRBK), M.D.C. Homes (NYSE:MDC), Meritage (also on the buyer list), New Home (NYSE:NWHM), Taylor Morrison (NYSE:TMHC), UCP, William Lyon (NYSE:WLH).
- Randow's top accretive scenario ... TRI Pointe buying William Lyon.
Apr. 27, 2015, 9:07 AM
- Assets at Pacific Ridge Homes include about 350 lots, 90 homes in inventory, and 40 homes in backlog. With the $72M cash purchase, DHI also gets control of about 400 lots through option contracts.
- For the 12 months ended on March 31, Pacific Ridge closed 182 homes for $79M. The average home size was 2.6K square feet and the ASP $436K.
Aug. 15, 2012, 12:08 PM
D.R. Horton (DHI -1.9%) acquires the homebuilding operations of Breland Homes, which operates in Huntsville, Mobile and Baldwin County in Alabama and along the gulf coast of Mississippi. The assets include approximately 320 homes in inventory, 1,020 finished lots and control of an additional 3,700 lots through option contracts. Terms of the deal were not disclosed.| Aug. 15, 2012, 12:08 PM