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Lennar Buys CalAtlantic in $9.3B Deal
Miami-based Lennar Corporation is acquiring Irvine, CA-based CalAtlantic Group, Inc. in a transaction valued at roughly $9.3 billion, including $3.6 billion of net debt assumed. The combination will create the nation’s largest homebuilder with annual revenues in excess of $17 billion and $18 billion in equity market capitalization, based on current market prices.
The combined company will control approximately 240,000 homesites, and will have roughly 1,300 active communities in 49 markets across 21 states, where about 50% of the U.S. population currently lives. CalAtlantic was formed by the 2015 merger of Standard Pacific Corp. and the Ryland Group.
The transaction is anticipated to generate annual cost savings and synergies of approximately $250 million, through direct cost savings, reduced overhead costs and the elimination of duplicate public company expenses. Additional savings could be achieved through production efficiencies, technology initiatives, and the roll out of Lennar’s digital marketing and dynamic pricing programs.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Sale/Acquisition
