D.R. Horton Acquires Iowa-Based Classic Builders
The large home builder has acquired one of Iowa's biggest builders, Classic Builders, based in Des Moines. The $60 million deal includes the acquisition of lots, homes in inventory and in sales order backlog.
Classic closed on 238 homes over the past year, average size being 1,650 square feet and an average sales price of $317,000. D.R. Horton Chairman of the Board Donald Horton says, “We are pleased to have Classic Builders join the D.R. Horton family. Their experienced, dedicated team and well-established building operations make Classic a great addition as we continue to expand our footprint in the Midwest.” HousingWire reports that Classic will operate as a separate division under the Horton umbrella.
According to D.R. Horton, it expects to pay approximately $60 million in cash for Classic Builders and its homebuilding assets. As part of the acquisition, D.R. Horton acquired approximately 670 lots, 130 homes in inventory, and 40 homes in sales order backlog. D.R. Horton also acquired control of approximately 550 lots through option contracts.
“We are excited to join the largest homebuilder in the country and look forward to continuing to provide superior customer service and growing our business further,” Seth Moulton, vice president of Classic Builders, said.