文章基本信息

标题：DR Horton to acquire Schuler Homes for 1.03 times revenue
期刊名称：Weekly Corporate Growth Report
出版年度：2001
卷号：Oct 15, 2001
出版社：N V S T.com, Inc.

DR Horton to acquire Schuler Homes for 1.03 times revenue

The Deal: D.R. Horton Inc. has agreed to purchase Schuler Homes Inc. for $653 million in cash and stock. The acquisition will create the nation's second-largest home builder. According to terms of the deal, Horton will also assume $552 million of Schuler debt. After news of the transaction was announced, shares of Schuler Homes gained $3.23 to $15.25, while D.R. Horton shares lost 71 cents to close at $20.39.

Discussion: Schuler Homes is one of the largest homebuilders in Hawaii. The firm builds and sells mainly singlefamily houses and also townhomes and condominiums to entry-level and first-time move-up buyers. Forced to expand beyond Hawaii because of that state's stagnant economy and residential construction slump, the company now builds and sells most of its homes in Arizona, California, Colorado, Oregon and Washington. Houses have an average selling price of about $236,000.

D.R. Horton builds and sells single-family homes designed primarily for the entry-level and move-up markets. Homes range in size from 1,000 square feel to 5,000 square feet, and the average selling price is about $182,600. D.R. Horton also builds luxury homes that can cost up to $800,000. The company, which provides mortgage financing and title services to home buyers, operates in more than 20 states and about 40 markets.