Pulte Homes will buy Centex in a stock for stock deal estimated to be worth $1.3 billion. It is said the the two companies, when combined, will have $1.8 billion in debt and $3.4 billion in cash. Wow, that’s lots of billions!
The union of Pulte and Centex will result in America’s largest home builder. Move over DR Horton.
With Pulte in the number 2 position by volume, and Centex in the number 3 position, the combined entity will far surpass DR Horton, which will move to the number 2 position behind the new Pulte-Centex company.
Here are the 2008 sales numbers, in closings.
DR Horton 23,915
Pulte 21,022
Centex 18,241
No word that I’ve found yet on any new name, or when the deal is expected to be complete. I suppose since Pulte is doing the buying, the Pulte name will remain. Although it would be smart for the Centex brand to be capitalized on as well.
