Mergers and acquisitions have become much more common in the home building industry these last few years, and after some significant deals in the last two years, everyone seems to be on the lookout for what's next.
Benzinga reporter Jayson Derrick spoke with Citi home-building analyst Will Randow to find out which companies may be likely targets for the next year. The main trend, Randow said, is larger public companies seeking to acquire smaller public companies, such as the recent Lennar acquisition of WCI Communities for a 37% premium.
Randow says D.R. Horton Inc. is best positioned to generate the highest amount of accretive opportunities, but other acquirers could include KB Home, Meritage Homes Corp., PulteGroup, Inc., Toll Brothers, and TRI Pointe Group.
The most likely, the analyst noted, would be Tri Pointe acquiring William Lyon Homes.