By Jill Ralph. On the heels of its purchase of American Heritage Homes, in Orlando, KB Home has acquired the assets of Tucson-based New World Homes, a 10-year-old locally owned builder. Neither company would disclose the price of the deal.
KB jumped to the market's number one spot in 1988 with the acquisition of Estes Homes. Now, with the holdings from New World Homes (7 percent market share), KB will control more than 22 percent of the market, with 28 new home communities under construction.
The deal is a marriage of firms that target mostly first-time buyers seeking homes in the $90,000 to $150,000 range. New World employs about 40 people and closed 389 homes in 2002. More than half of its employees have moved to KB Home, says Terry Klinger, New World Homes president who is slated to become KB's vice president of business development in Tucson.
"All employees were offered permanent or transitional employment. Nobody is being left out in the cold," Klinger said.
Published in BIG BUILDER Magazine, December 2002