FORT WORTH, Texas--(BUSINESS WIRE)--May 9, 2014--
D.R.
Horton, Inc. (NYSE:DHI), America’s Builder, announced the
acquisition of the homebuilding operations of Crown
Communities (“Crown”), which builds in Georgia, South Carolina, and
eastern Alabama. The homebuilding assets acquired include a sales order
backlog of approximately 420 homes sold, 640 homes in inventory and
2,350 lots. D.R. Horton also acquired control of approximately 3,400
lots through option contracts. In calendar 2013, Crown closed 1,540
homes ($375 million in revenue) with an average home size of
approximately 3,500 square feet and an average sales price of $244,000.
Crown is ranked as the 28th largest builder in the United States by
Builder Magazine and is the largest builder in the Atlanta market. D.R.
Horton will pay approximately $210 million in cash for the purchase, and
Crown will operate as a separate division within D.R. Horton.
Donald R. Horton, Chairman of the Board, said, “We welcome the Crown
team to the D.R. Horton family. We are excited about combining the two
largest builders in the Atlanta area to establish double-digit market
share for D.R. Horton. The acquisition also adds the Augusta, GA and
Spartanburg, SC markets to our expansive geographic footprint, while
strengthening our presence in Greenville and Columbia, SC. We believe
the combined D.R. Horton and Crown team will be a strong platform for
further growth in these dynamic markets in the Southeast.”
Frank Downey, Founder of Crown Communities, said, “We are proud of the
outstanding reputation for quality and customer service that Crown
Communities has built over the past 16 years and are looking forward to
the future with the D.R. Horton team.”
D.R. Horton, Inc., America’s
Builder, is the largest homebuilder in the United States, based on
its 25,712 homes closed in the twelve-month period ended March 31, 2014.
Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 79
markets in 27 states in the East, Midwest, Southeast, South Central,
Southwest and West regions of the United States. The Company is engaged
in the construction and sale of high quality homes with sales prices
ranging from $100,000 to over $1,000,000. D.R. Horton also provides
mortgage financing and title services for homebuyers through its mortgage
and title
subsidiaries.
Portions of this document may constitute “forward-looking statements” as
defined by the Private Securities Litigation Reform Act of 1995.
Although D.R. Horton believes any such statements are based on
reasonable assumptions, there is no assurance that actual outcomes will
not be materially different. All forward-looking statements are based
upon information available to D.R. Horton on the date this release was
issued. D.R. Horton does not undertake any obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Forward-looking statements in
this release include that D.R. Horton will pay approximately $210
million in cash for the purchase, and Crown will operate as a separate
division within D.R. Horton. Forward-looking statements also include
that we are excited about combining the two largest builders in the
Atlanta area to establish double-digit market share for D.R. Horton; the
acquisition also adds the Augusta, GA and Spartanburg, SC markets to our
expansive geographic footprint, while strengthening our presence in
Greenville and Columbia, SC; and we believe the combined D.R. Horton and
Crown team will be a strong platform for further growth in these dynamic
markets in the Southeast.
Factors that may cause the actual results to be materially different
from the future results expressed by the forward-looking statements
include, but are not limited to: potential deterioration in homebuilding
industry conditions and the current weak U.S. economy; the cyclical
nature of the homebuilding industry and changes in economic, real estate
and other conditions; constriction of the credit markets, which could
limit our ability to access capital and increase our costs of capital;
reductions in the availability of mortgage financing and the liquidity
provided by government-sponsored enterprises, the effects of government
programs, a decrease in our ability to sell mortgage loans on attractive
terms or an increase in mortgage interest rates; the risks associated
with our land and lot inventory; home warranty and construction defect
claims; supply shortages and other risks of acquiring land, building
materials and skilled labor; reductions in the availability of
performance bonds; increases in the costs of owning a home; the effects
of governmental regulations and environmental matters on our
homebuilding operations; the effects of governmental regulation on our
financial services operations; our substantial debt and our ability to
comply with related debt covenants, restrictions and limitations;
competitive conditions within the homebuilding and financial services
industries; our ability to effect our growth strategies or acquisitions
successfully; the effects of the loss of key personnel; the impact of an
inflationary or deflationary environment; our ability to realize the
full amount of our deferred income tax assets; and information
technology failures and data security breaches. Additional information
about issues that could lead to material changes in performance is
contained in D.R. Horton’s annual report on Form 10-K and our most
recent quarterly report on Form 10-Q, both of which are filed with the
Securities and Exchange Commission.
WEBSITE ADDRESS: www.drhorton.com
Source: D.R. Horton, Inc.
D.R. Horton, Inc.
Jessica Hansen, 817-390-8200
Vice President
of Communications
[email protected]
