Homebuilders Pulte, Centex merge

Filed under: Daily News | Tags:, , , ,

Pulte Homes and Centex Corp. have merged.

Boards of both companies approved an agreement in a stock-for-stock transaction valued at $3.1 billion, including $1.8 billion of net debt.

Pulte has built homes in The Heights at Cross Creek, The Bluffs at Spring Creek, Sand Creek Villas and Countryside Townhomes.

Centex currently has no active new home sites in Colorado.

The significance of the merger will be primarily financial since together, the two national companies will have the strongest liquidity position among all homebuilders, with more than $3.4 billion, including $1.8 billion of net debt.

The new organization expects to realize cost savings and efficiencies of $350 million annually and will retire more than $1 billion in debt before the end of the year.