Two homebuilders with a large Florida presence will be merged when Pulte Homes of Michigan buys Dallas-based Centex Corp.
Pulte has agreed to buy Centex in a stock swap valued at $1.3 billion, the two companies said Wednesday. The acquisition also includes net debt of $1.8 billion, giving the entire transaction a value of $3.1 billion.
Under the terms of the agreement, Centex shareholders will receive 0.975 of a share of Pulte common stock for each share of Centex they own. The deal, which is scheduled to be completed in the third quarter, would create the nation’s largest homebuilder. The acquisition comes as large homebuilders, including Hollywood-based TOUSA, are struggling in bankruptcies.
Pulte (NYSE: PHM) and Centex (NYSE: CTX) said the deal should allow for $350 million in annual cost savings and the retirement of $1 billion of debt by the end of 2009. The boards of both companies unanimously approved the merger.
According to Pulte CEO Richard J. Dugas Jr. the combination will put both firms “in an excellent position to navigate through the current housing downturn” and “accelerate a return to profitability.”
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Original Aritcle Can be found here:
http://www.bizjournals.com/southflorida/stories/2009/04/06/daily29.html
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