D.R. Horton, Inc. Acquires the Homebuilding Operations of Wilson Parker Homes
September 06 2016 - 6:45AM
Business Wire
D.R. Horton, Inc. (NYSE:DHI), America’s Builder, announced the
acquisition of Wilson Parker Homes (“Wilson Parker”), which
operates in Atlanta and Augusta, Georgia; Raleigh, North Carolina;
Columbia, South Carolina and Phoenix, Arizona. The homebuilding
assets acquired include approximately 490 lots, 390 homes in
inventory and 300 homes in sales order backlog, the majority of
which relate to Wilson Parker’s Atlanta operations. D.R. Horton
also acquired control of approximately 1,850 lots through option
contracts. For the twelve months ended June 30, 2016, Wilson Parker
closed 906 homes ($201 million in revenue) with an average home
size of approximately 2,700 square feet and an average sales price
of $222,000. D.R. Horton expects to pay approximately $90 million
in cash for the purchase.
Donald R. Horton, Chairman of the Board, said, “We welcome
Wilson Parker Homes to the D.R. Horton family. Their
well-established lot position makes them a great fit as we continue
to expand our presence in the greater Atlanta area. This
acquisition will further expand D.R. Horton’s industry-leading
market share in Atlanta to greater than 20% in 2016, in addition to
improving our market share in Augusta, Raleigh and Phoenix.”
D.R. Horton, Inc., America’s Builder, has been the largest
homebuilder by volume in the United States for fourteen consecutive
years. Founded in 1978 in Fort Worth, Texas, D.R. Horton has
operations in 78 markets in 26 states across the United States and
closed 38,638 homes in the twelve-month period ended June 30,
2016. The Company is engaged in the construction and sale of
high-quality homes through its diverse brand portfolio that
includes D.R. Horton, Express Homes, Freedom Homes and Emerald
Homes with sales prices ranging from $100,000 to over $1,000,000.
D.R. Horton also provides mortgage financing and title services for
homebuyers through its mortgage and title subsidiaries.
Portions of this document may constitute “forward-looking
statements” as defined by the Private Securities Litigation Reform
Act of 1995. Although D.R. Horton believes any such statements are
based on reasonable assumptions, there is no assurance that actual
outcomes will not be materially different. All forward-looking
statements are based upon information available to D.R. Horton on
the date this release was issued. D.R. Horton does not undertake
any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. Forward-looking statements in this release include
that D.R. Horton expects to pay approximately $90 million in cash
for the purchase. The forward-looking statements also include that
Wilson Parker’s well-established lot position makes them a great
fit as we continue to expand our presence in the greater Atlanta
area and that this acquisition will further expand D.R. Horton’s
industry-leading market share in Atlanta to greater than 20% in
2016, in addition to improving our market share in Augusta, Raleigh
and Phoenix.
Factors that may cause the actual results to be materially
different from the future results expressed by the forward looking
statements include, but are not limited to: potential deterioration
in homebuilding industry conditions or general economic conditions;
the cyclical nature of the homebuilding industry and changes in
economic, real estate and other conditions; constriction of the
credit markets, which could limit our ability to access capital and
increase our costs of capital; reductions in the availability of
mortgage financing and the liquidity provided by
government-sponsored enterprises, the effects of government
programs, a decrease in our ability to sell mortgage loans on
attractive terms or an increase in mortgage interest rates; the
risks associated with our land and lot inventory; home warranty and
construction defect claims; supply shortages and other risks of
acquiring land, building materials and skilled labor; reductions in
the availability of performance bonds; increases in the costs of
owning a home; the impact of an inflationary, deflationary or
higher interest rate environment; the effects of governmental
regulations and environmental matters on our homebuilding
operations; the effects of governmental regulation on our financial
services operations; our substantial debt and our ability to comply
with related debt covenants, restrictions and limitations;
competitive conditions within the homebuilding and financial
services industries; our ability to effect our growth strategies or
acquisitions successfully; our ability to realize the full amount
of our deferred income tax assets; the effects of the loss of key
personnel; the effects of negative publicity; and information
technology failures and data security breaches. Additional
information about issues that could lead to material changes in
performance is contained in D.R. Horton’s annual report on Form
10-K and our most recent quarterly report on Form 10-Q, both of
which are filed with the Securities and Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20160906005460/en/
D.R. Horton, Inc.Jessica Hansen, 817-390-8200Vice President of
Investor RelationsInvestorRelations@drhorton.com
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