Lennar to pay $5.7B for CalAtlantic, become biggest US homebuilder

Companies reported revenues of more than $17B last year

Miami /
Oct.October 30, 2017 10:41 AM

Miami-based Lennar Corporation will merge with CalAtlantic Group, creating the largest homebuilder in the country in a $5.7 billion deal.

The deal will boost the combined company’s standing to a top 3 ranking in 24 of the top 30 markets in the country, Lennar CEO Stuart Miller said in a statement. Together, Lennar and CalAtlantic reported revenues of more than $17 billion last year and a market cap of about $18 billion.

Lennar expects to generate about $250 million a year in savings, including $75 million in fiscal year 2018. The combined company will control 240,000 homesites and 1,300 communities in 49 markets across 21 states.

The $9.3 billion deal includes about $3.6 billion of debt Lennar will assume, according to a press release.

Shareholders of both companies have to approve the merger, which is expected to close in the first quarter of 2018. CalAtlantic stockholders would own about 26 percent of the combined company, according to the release. Each CalAtlantic share will be valued at a 27 percent premium, or 0.885 of Lennar stock, and shareholders will have the option to cash out up to $1.2 billion.

The transaction is subject to approval by Lennar and CalAtlantic stockholders. CalAtlantic is based in Arlington, Virginia. Scott Stowell, CalAtlantic’s executive chairman, will join Lennar’s board of directors.

Lennar has dominated the Miami market, and recently picked up more than 180 acres in north Miami-Dade.  – Katherine Kallergis


Related Articles

arrow_forward_ios
Stuart Miller, Executive Chairman of Lennar (Getty, University of Miami)
Lennar picks up 27 acres in Homestead for $7M
Lennar picks up 27 acres in Homestead for $7M
Toll Brothers chairman and CEO Douglas C. Yearley, Jr. with Jupiter Country Club (Toll, Facebook via Jupiter Country Club)
Toll Brothers faces lawsuits over alleged construction defects at Jupiter Country Club
Toll Brothers faces lawsuits over alleged construction defects at Jupiter Country Club
Lennar’s Stuart Miller and 28600 Southwest 132nd Avenue (Google Maps, Lennar)
Lennar sells former trailer park site in Homestead at a loss and buys Broward land
Lennar sells former trailer park site in Homestead at a loss and buys Broward land
PulteGroup's Brent Bake a rendering of the site in Avenir
Pulte buys site at Avenir in Palm Beach Gardens, plans 390-home development
Pulte buys site at Avenir in Palm Beach Gardens, plans 390-home development
Frank Mendez with Patricio Cordero (inset) and the property (Linkedin, Google Maps)
Pinecrest homeowners fight lien from celebrity builder they allege was running a kickback scheme
Pinecrest homeowners fight lien from celebrity builder they allege was running a kickback scheme
Donald R. Horton and a map of the development site (D.R. Horton)
D.R. Horton advances 211-unit townhouse project in Pembroke Pines
D.R. Horton advances 211-unit townhouse project in Pembroke Pines
Toll Brothers CEO Doug Yearley Jr. (Toll Brothers)
Toll Brothers launches sales at new luxury community in Davie
Toll Brothers launches sales at new luxury community in Davie
Lennar's Stuart Miller, Rick Beckwitt  with the site (Google Maps; Lennar)
Lennar pays $8M for South Miami-Dade housing community site
Lennar pays $8M for South Miami-Dade housing community site
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...