Connect with us

Hi, what are you looking for?

Jewish Business News

Real Estate

Lennar corp. pays $9.3 Billion for CalAtlantic, becoming Biggest U.S. Homebuilder

Lennar Corp. biggest U.S homebuilder founded by Leonard Miller and Arnold Rosen, 63 years ago. The name is a portmanteau of the first names of the founders.

Stuart-miller-Lennar

 

Miami-based Lennar Corporation and CalAtlantic Group, today announced a definitive merger agreement creating the largest homebuilder in the United States, in a transaction valued at $9.3 billion, including $3.6 billion of net debt.

The deal is comprised of 80 percent stock and 20 percent cash. Each share of CalAtlantic stock will be exchanged for 0.885 shares of Lennar Class A common stock which was priced at $51.34 per share on the New York Stock Exchange on Oct. 27.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.

The deal translates to a 27 percent premium on CalAtlantic’s closing price that same day. CalAtlantic stockholders will own approximately 26 percent of the combined company.

The merger would give the companies control on 240,000 homesites. It will have 1,300 active communities in 49 markets across 21 states, where 50 percent of the U.S. population currently live.

The business side creates America’s largest homebuilder with the last 12 months of revenues in excess of $17 billion and equity market capitalization, based on current market prices, of $18 billion.

The transaction will generate annual cost savings and synergies of approximately $250 million, with $75 million achieved in fiscal year 2018.

The Dallas-based D.R. Horton is currently the biggest home builder in the U.S., with $12.3 billion in revenues in 2016, according to the industry website Professional Builder. Lennar is No. Two with $9.5 billion, while CalAtlantic is fourth with $6.3 billion.
Earlier this month Lennar acquired land in Plantation, Florida and announced plans to build a 271-unit luxury apartment complex on the site.

Lennar Corporation

Founded 63 years ago, in 1954. the name Lennar is a portmanteau of the first names of 2 of the founders of the company, Leonard Miller and Arnold Rosen. In 1997, Stuart Miller, the son of co-founder Leonard Miller, took over the company. Leonard Miller died in 2002.

The company also owns Rialto Capital Management, the sponsor of 6 private equity funds that invest in real estate and an originator commercial mortgage loans for securitization.

​​

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Copyright © 2021 Jewish Business News