The nation’s largest homebuilder is buying a water services company in an all-cash deal to ensure it has enough water for its communities.
D.R. Horton said Thursday that it bought Carson City, Nevada-based Vidler Water Resources. The total equity of the deal is valued at about $291 million, according to the announcement previously reported by the Dallas Morning News.
The Arlington-based developer said the acquisition was needed to satisfy a “lack of adequate water supply” that many of its markets are facing.
Vidler is a subsidiary of Vidler Water Company, which sources, develops and provides water resources to fast-growing communities lacking or running short of available water. The company has relationships with regulators, utilities, Native American tribes, community leaders, developers and alternative energy companies.
“Vidler owns a portfolio of premium water rights and other water-related assets in the southwestern United States in markets where D.R. Horton operates that require water for development, but face a lack of adequate supply,” the company said.
When the deal is finalized, Vidler will operate as a separate division within D.R. Horton— a step that is expected in the second quarter. Following completion of the merger, the common stock of Vidler will no longer be listed for trading on the Nasdaq.
Horton develops and manages projects in 102 markets in 32 states and closed the sale of 81,622 homes in 2021. The homebuilding giant led by David Auld has a wide variety of projects but often makes headlines for spending billions on sprawling land deals and development in suburban and exurban America. It also operates on the construction side of development through its brand portfolio that includes D.R. Horton, Emerald Homes, Express Homes and Freedom Homes.
Under its subsidiary, Continental Homes of Texas, which Horton bought for $305 million in 1997, the developer launched a 1,000-acre master-planned community in rural Central Texas.