Wednesday, April 08, 2009
by John Walker
Pulte Homes has agreed to buy Centex Corp. for $1.3 billion to create the largest U.S. homebuilder by revenue. Both companies have a large presence in the market for Charlotte homes, Pulte listing 13 neighborhoods where they are actively building and selling while Centex has 20.
Pulte agreed to pay 0.975 of a share for each Centex share, valuing Centex stock at $10.50 per share, 38% more than yesterday's closing price of $7.62. The transaction, approved unanimously by both companies' boards, includes $1.8 billion in net debt.
The two companies are betting that by combining they will be better able to survive the soft housing market for new construction. The deal also will give Pulte access to states with stro
nger new home sales, including Texas and the Carolinas, especially the Charlotte NC region. The combined company we will have considerable presence in more than 59 markets across America.
To see listings actively marketed for sale in the Charlotte area by these two builders and others, visit our Charlotte Homes for Sale website and request a search be setup for you for new construction, the price range you require, the bed and bath configuration you desire, as well as many other variables.