Pulte Homes and Centex to Merge, Becoming Biggest U.S. Builder
Pulte Homes, Inc. and Centex Corporation announced on April 8 that their boards of directors had unanimously approved a merger.
“Combining these two industry leaders with proud legacies into one company puts us in an excellent position to navigate through the current housing downturn, poised to accelerate our return to profitability,” said Pulte President and CEO Richard Dugas.
“Centex’s significant presence in the entry level and move-up categories is complemented by Pulte’s strength in both the move-up and active adult segments, the latter through our popular Del Webb brand,” Dugas said. “Together we will have considerable presence in more than 59 markets across America. In addition, both organizations share an unwavering focus on delivering unparalleled customer satisfaction, maximizing the influence of strong brands and setting new standards of achievement in operational efficiency.”
Dugas noted that Centex has sizable land holdings in both Texas and the Carolinas, “two areas that continue to exhibit strength in the face of today’s difficult housing market.”
“We believe this is the right combination at the right time in the business cycle,” said Centex Chairman and CEO Timothy Eller.
“By acting decisively now, we’re creating unrivaled firepower to capitalize on the opportunities in home building that are now becoming visible on the horizon,” Eller said. “We will have a deeper and more expanded presence that we are confident will allow us to begin realizing the benefits of our combined scale immediately.”
In calendar year 2008, Pulte and Centex delivered more than 39,000 closings, with combined pro forma revenues of $11.6 billion.
The combined company will have more than $3.4 billion in cash, the most of any builder in the country.
The combined company expects to retire more than $1 billion of debt maturities before the end of this year and realize cost savings of about $350 million annually.
Tax Credit Web Site Looks at Opportunity of a Lifetime
Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.
Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.
Spanish Version Also Online
A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers.
Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market.
Plan to Attend Construction Forecast Conference
Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry.
Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys.
For more information and to register, visit www.nahb.org/cfc.
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