Dallas, Texas 05/20/2014 (FINANCIALSTRENDS) – A homebuilding company, D.R. Horton, Inc. (NYSE:DHI) recently announced the acquisition of homebuilding operation Crown Communities, Atlanta’s largest builder, for $210 million in cash. The company keeps buying homebuilding operations from time to time to expand its geographic presence and this acquisition will add more strength as far its presence is concerned in the lucrative Southeastern region housing market. D.R. Horton enjoys commendable geographic diversities in the homebuilding industry and hence it does not require depending on any single market.
Crown Communities Acquisition:
Following this acquisition, D.R. Horton, Inc. (NYSE:DHI) takes control of Crown’s order backlog of almost 2,350 lots, 640 homes in inventory and over 400 homes sold. Crown homebuilding operations are sprawled across eastern Alabama, Georgia and South Carolina. The company already has a strong presence in the region and this acquisition would strengthen it to capture further market share in the region. The company has already performed well in the Southeast division in the recently ended quarter 2Q14. The company reported increase in both sales orders as well as home closings in the region.
D.R. Horton’ Acquisitions:
D.R. Horton, Inc. (NYSE:DHI) earlier bought the homebuilding business of Breland Homes back in August 2012 which also helped it expand its presence in Southeast region. In October 2013, the company bought Regent Homes which helped it expand its presence in the Eastern region of U.S. Regent Homes homebuilding operations were focused around Greensboro, Charlotte and Winston-Salem, N.C. This acquisition helped the company to record the highest increase in orders and home closings during 2Q14 in the East geographic segment.
The D.R. Horton management is confident of growth in revenues as well as profitability during 2H14 given the broad geographic diversity, product diversity, strong balance sheet and robust land position.
The stock of D.R. Horton, Inc. closed at $21.96, losing 1.04% from its previous close.