Sun City Parent Co to Merge with Centex

Category: Active adult communities

In a proposed merger that will create the largest homebuilder in America, Pulte Homes will combine with homebuilder Centex in an all stock deal. Pulte Homes is the parent company of the Anthem and Del Webb brands, the latter which brings you the huge Sun City active adult communities around the U.S.
The combined company, which will have $3.4 billion in cash, will use the Pulte name. Centex tends to specialize in entry level and first and second move up homes, while Pulte is known for its presence in the active adult segment of the market.

One reason given for the merger, other than operating efficiencies, is the attraction of the large landholdings owned by Centex in Texas and the Carolinas. These markets have been less affected by the housing meltdown than many others. The combined company will have operations in 59 markets and 29 states.
The merger appears to make sense in that it creates relatively little redundancy and in fact strengthens both companies.  Our prediction: when the market recovers, look for more Pulte and Del Webb projects in the Sunbelt.

Posted by Admin on April 10th, 2009

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