D.R. Horton, Inc. Acquires the Homebuilding Operations of Classic Builders
December 04 2018 - 4:30PM
Business Wire
D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today announced
the acquisition of Classic Builders (Classic), the largest
homebuilder by volume in Des Moines, Iowa in calendar 2017 as
reported by Builder magazine. The homebuilding assets acquired
include approximately 670 lots, 130 homes in inventory and 40 homes
in sales order backlog. D.R. Horton also acquired control of
approximately 550 lots through option contracts. For the twelve
months ended October 31, 2018, Classic closed 238 homes ($75
million in revenue) with an average home size of approximately
1,650 square feet and an average sales price of $317,000. D.R.
Horton expects to pay approximately $60 million in cash for the
purchase, and Classic will operate as a separate division within
D.R. Horton.
Donald R. Horton, Chairman of the Board, said, “We are pleased
to have Classic Builders join the D.R. Horton family. Their
experienced, dedicated team and well-established building
operations make Classic a great addition as we continue to expand
our footprint in the Midwest.”
Josh Moulton, President of Classic Builders, said, “Classic
became the largest single-family homebuilder in the Des Moines area
by building homes based on strong company values led by superior
customer service.” Seth Moulton, Vice President of Classic
Builders, added, “We are excited to join the largest homebuilder in
the country and look forward to continuing to provide superior
customer service and growing our business further.”
About D.R. Horton, Inc.
D.R. Horton, Inc., America’s Builder, has been the largest
homebuilder by volume in the United States since 2002. Founded in
1978 in Fort Worth, Texas, D.R. Horton has operations in 83 markets
in 28 states across the United States and closed 51,857 homes
during its fiscal year ended September 30, 2018. The Company is
engaged in the construction and sale of high-quality homes through
its diverse brand portfolio that includes D.R. Horton, Emerald
Homes, Express Homes and Freedom 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.
Forward-Looking Statements
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 we expect to pay approximately $60 million in cash for the
purchase, and Classic will operate as a separate division within
D.R. Horton. Forward-looking statements also include that their
experienced, dedicated team and well-established building
operations make Classic a great addition as we continue to expand
our footprint in the Midwest.
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: the cyclical nature of
the homebuilding industry and changes in economic, real estate and
other conditions; constriction of the credit and public capital
markets, which could limit our ability to access capital and
increase our costs of capital; reductions in the availability of
mortgage financing provided by government agencies, changes in
government financing 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; our ability to effect our growth strategies,
acquisitions or investments successfully; the impact of an
inflationary, deflationary or higher interest rate environment;
home warranty and construction defect claims; the effects of health
and safety incidents; the effects of negative publicity; 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 effects of
governmental regulations and environmental matters on our
homebuilding and land development operations; the effects of
governmental regulations on our financial services operations; our
significant debt and our ability to comply with related debt
covenants, restrictions and limitations; competitive conditions
within the homebuilding and financial services industries; the
effects of the loss of key personnel; 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, which is
filed with the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20181204006084/en/
D.R. Horton, Inc.Jessica Hansen, 817-390-8200Vice President of
Investor RelationsInvestorRelations@drhorton.com
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