In the second week of February 2018, Lennar Corporation and CalAtlantic Homes was approved nearly unanimously by the companies' stockholders, making CalAtlantic a fully-owned subsidiary of Lennar.
Lennar will own or control roughly 250,000 home sites, and will be selling homes in 21 states, making it the largest home builder in the U.S. based on revenues, the company said in a statement. Lennar Chief Executive Officer Stuart Miller said, “This combination benefits from overall economic strength, driven by low unemployment, rising wages, favorable tax reform, and strong housing demand. In this context, the normalization of interest rates should be offset by these favorable economic conditions,” HousingWire reports.
According to a release, the merger consideration will consist of approximately $1.16 billion in cash, 82.7 million shares of Lennar Class A common stock and 1.6 million shares of Lennar Class B common stock. Based on New York Stock Exchange closing prices on Friday, February 9, 2018, the value of the Lennar Class A and Class B common stock that will be issued in the merger totaled $4.9 billion.
Advertisement
Related Stories
Building Technology
How Are Builders Adopting AI?
Building pros weigh in on the benefits and unexpected challenges of implementing artificial intelligence in their construction operations at the 2023 National Institute of Building Sciences Building Innovation conference
Builders
Latest Home Builder Sentiment Is a Response to Rising Mortgage Rates
Builders are reacting to stubbornly high mortgage rates, which are eroding housing affordability
Builders
A Lack of Housing Inventory Spells Opportunity for Home Builders
Home builders are exceeding 2023 expectations as a growing number of buyers turn to new construction rather than competing for the meager supply of existing homes
