MIAMI—Lennar Corp.'s merger with CalAtlantic Group became effective at 11:59 pm on Monday, creating the nation's largest homebuilder by revenue. The $9.3-billion deal, including the assumption of $3.6 billion of debt, was first announced this past October and was approved nearly unanimously by stockholders in both companies.
“This combination brought together two leading homebuilders in familiar markets with compatible product lines,” says Lennar CEO Stuart Miller. “With stable to improving market conditions, this combination enables our company to use local market concentration to drive synergies and efficiencies in the most strategic markets in the country.”
Miller adds that the merged company will benefit “overall economic strength, driven by low unemployment, rising wages, favorable tax reform, higher consumer confidence and strong housing demand. In this context, the normalization of interest rates should be offset by these favorable economic conditions.”
On a pro forma basis, the Lennar/CalAtlantic combination had more than $17 billion in revenues over the 12 months prior to the merger announcement. Post-merger, Lennar will own or control approximately 250,000 home sites and is actively selling homes in approximately 1,300 residential communities across 21 states. In its most recent fiscal year, Lennar delivered 29,394 single family homes, while and CalAtlantic delivered 14,602. Lennar also has a multifamily development platform, launched in 2015.
The merger means that a number of CalAtlantic employees are joining the Lennar team. Scott Stowell, CalAtlantic's execute chairman, will join the Lennar board, while CalAtlantic CFO Jeff McCall will become an SVP focusing on corporate services.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
