D.R. Horton, Inc. (NYSE:DHI) on Tuesday said is acquiring Wilson Parker Homes and its home building operations in Atlanta and Augusta, Georgia; Raleigh, North Carolina; Columbia, South Carolina and Phoenix, Arizona.
The acquisition includes approximately 490 lots, 390 homes in inventory and 300 homes in sales order backlog, most in and around Atlanta. Wilson Parker currently has more than two dozen active selling communities in the Atlanta metro and has several more on the way. Horton was already the largest home builder in the metro. It now will weild a market share greater than 20%, according to Keefe, Bruyette & Woods analysts, who, in a research note, stated, "We view the acquisition positively as DHI expands its industry-leading market share."
Elsewhere, in Augusta, WPH has three active selling communities and one near sellout; in Phoenix, it has two active communities; in Columbia, S.C., it also has two communities; and in Raleigh, it has four active communties and one near sellout.
In the deal, Horton also gained control of approximately 1,850 lots through option contracts.
For the twelve months ended June 30, 2016, Wilson Parker closed 906 homes, generating $201 million in revenue with an average home size of approximately 2,700 square feet and an average sales price of $222,000. Horton said it expects to pay approximately $90 million in a cash deal.
Donald R. Horton, Chairman of the Board, said, “We welcome Wilson Parker Homes to the D.R. Horton family. Their well-established lot position makes them a great fit as we continue to expand our presence in the greater Atlanta area. This acquisition will further expand D.R. Horton’s industry-leading market share in Atlanta to greater than 20% in 2016, in addition to improving our market share in Augusta, Raleigh and Phoenix.”
Shares of Horton were down marginally at $31.49 in relatively light trading mid-afternoon on what was mostly a down day for the home building EFT XHB as well.