D.R. Horton, Inc. (NYSE:DHI) after market close Tuesday announced the acquisition of Classic Builders, the largest home builder by volume in Des Moines, Iowa in calendar 2017 as reported by BUILDER.
The home building assets acquired include approximately 670 lots, 130 homes in inventory and 40 homes in sales order backlog. D.R. Horton also acquired control of approximately 550 lots through option contracts.
For the twelve months ended October 31, 2018, Classic closed 238 homes ($75 million in revenue) with an average home size of approximately 1,650 square feet and an average sales price of $317,000. D.R. Horton expects to pay approximately $60 million in cash for the purchase, and Classic will operate as a separate division within D.R. Horton.
Donald R. Horton, chairman of the board, said, “We are pleased to have Classic Builders join the D.R. Horton family. Their experienced, dedicated team and well-established building operations make Classic a great addition as we continue to expand our footprint in the Midwest.”
Josh Moulton, president of Classic Builders, said, “Classic became the largest single-family home builder in the Des Moines area by building homes based on strong company values led by superior customer service.” Seth Moulton, Vice President of Classic Builders, added, “We are excited to join the largest home builder in the country and look forward to continuing to provide superior customer service and growing our business further.”
