The deal would marry a Boca-based homebuilder that produced $884 million in revenue and delivered 3,573 homes over the 12 months ended Oct. 31, 2000 with a Houston-area homebuilder that produced sales of $641 million and delivered 2,499 homes over the 12 months ended Dec. 31.
The proposed merger follows the November acquisition of Engle Homes by Technical Olympic USA Inc., a wholly owned subsidiary of the Athens, Greece-based construction company Technical Olympic S.A. Technical Olympic USA owns 80% of the stock in Newmark Homes.
Although neither company disclosed a possible closing date, the deal depends on approval of all independent members of each company's board of directors. If approved, a special committee composed of board members could propose an exchange of shares in Engle Holdings for shares of Newmark's common stock.
News of the merger also comes as Newmark Homes, which trades on the Nasdaq National Market, declared a cash dividend of 54 cents a share payable May 15 to shareholders of record as of March 31. The company is distributing the dividend on reports of 47.8% increase in its corporate profits for the year ended Dec. 31.
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