Lennar Makes Deal for CalAtlantic as Home Builders Face Challenges
New York Times
By Chad Bray and Matthew Goldstein
The home-building sector in the United States has faced an array of challenges, including natural disasters, a long-running labor shortage and increased regulatory costs. Now, two of the nation’s biggest residential-construction companies are merging in hopes that their combined heft will help them counter those forces. The Lennar Corporation said on Monday that it would merge with the CalAtlantic Group to form America’s largest home builder in a stock-and-cash deal worth $5.7 billion. The deal would create a behemoth with around 240,000 building plots in 21 states, a market value of about $18 billion and combined revenue of $17 billion over the past 12 months.
About author
You might also like
KB Home Stock Hammered
KB Home suffered its worst one-day percentage drop since Aug. 19, 1992 on Tuesday with a 16.3% decline. With lower than expected margins in the 4th quarter of 2014 and