On Monday, Lennar Corporation announced plans to buy smaller rival CalAtlantic Group, making it the largest homebuilder in the United States. The stock-and-cash deal is valued at about $9.3 billion, including a debt of $3.6 billion.
Lennar and CalAtlantic already have large footprints across the US. Combined, the two corporations have 240,000 building plots in 21 states, a market value of around $18 billion, and a revenue of $17 billion over the past year.
The announcement follows ongoing labor shortages, increased regulatory costs, and a summer of powerful hurricanes that destroyed thousands of homes, mostly in Texas, Florida, the Caribbean Islands, and Puerto Rico. According to The New York Times, Lennar and CalAtlantic hope that by merging, they can address some of the issues that emerged from the disasters, including a decline in construction in the South.
Take a look at some recent projects from Lennar and CalAtlantic below.
Based in Miami, Florida, Lennar Corporation has built hundreds of thousands of homes since its founding in 1954.
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CalAtlantic Group, an Arlington, Virginia-based homebuilder, has constructed properties in 19 US states.
In March 2017, Lennar acquired Westchester Pavilion in White Plains, New York for $56.6 million. The company will redevelop the site into 700 apartments and 90,000 square feet of retail space.
Source: Urstadt Biddle Properties