MIAMI _ Miami-based Lennar Corp. the second-largest home construction company in the U.S., is set to take over the No. 1 spot.
Lennar announced a $9.3 billion purchase of Virginia-based CalAtlantic Group that would give the combined companies a top-three position in 24 of the largest metropolitan statistical areas in the U.S., with a combined revenue of $17 billion and equity market capitalization of $18 billion, based on current market prices. Both companies are publicly traded.
The combination would give Lennar control of 240,000 home sites and 1,300 active communities in 49 markets across 21 states.
The deal is comprised of 80 percent stock and 20 percent cash. Current CalAtlantic shareholders will receive an 0.885 shares of Lennar Class A common stock, which was priced at $51.34 per share on the New York Stock Exchange on Friday/ The deal translates to a 27 percent premium on CalAtlantic's closing price that same day. CalAtlantic stockholders will own about 26 percent of the combined company.
Dallas-based D.R. Horton is currently the biggest home builder in the U.S., with $12.3 billion in revenue in 2016, according to the industry website Professional Builder. Lennar is No. 2 with $9.5 billion, while CalAtlantic is fourth with $6.3 billion.
