Actionable news
0
All posts from Actionable news
Actionable news in LEN: LENNAR CORPORATION CLASS A,

Lennar, CalAtlantic Strike Deal to Create Largest U.S. Home Builder

The total transaction value of $9.3 billion reported by the companies includes $3.6 billion of net debt assumed.

Lennar Chief Executive Stuart Miller said the combination will increase Lennar’s presence in markets it already operates in and allow it to be one of the top three home builders in 24 of the top 30 markets in the country.

The deal would create a combined company with revenues of more than $17 billion in the last year and a market cap of about $18 billion, based on Friday’s closing share prices.

The companies expect the deal to generate $250 million in annual cost savings, including about $75 million in fiscal year 2018.

CalAtlantic shareholders will also have the option to exchange all or a portion of their shares for cash, subject to a maximum cash amount of $1.2 billion, or about 27% of CalAtlantic’s market value.

The deal is subject to approval by shareholders of both companies.

CalAtlantic shares, up 19% this year, rose 8.78% premarket Monday on low volume.


More