Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, October 30, 2020

Article Excerpt

D.R. HORTON INC., $66.81, symbol DHI on New York, is the largest homebuilder by volume in the U.S. It operates in 88 markets across 29 states. In the 12 months ended June 30, 2020, it closed on 61,164 homes. The company’s home-building brands include D.R. Horton, Emerald Homes, and Freedom Homes. Home prices range from $100,000 to over $1,000,000. D.R. Horton also provides mortgage financing, title services and insurance agency services for homebuyers through its mortgage, title and insurance units. On October 19, 2020, the company announced it would acquire Texas-based homebuilder Braselton Homes. That firm is the largest homebuilder in Corpus Christi. Braselton closed 223 homes in the twelve months ended September 30, 2020, generating revenue of $56.3 million. As part of the transaction, D.R. Horton acquired 95 lots, 90 homes in inventory, and 125 homes in a sales order backlog for $23 million in cash. It also acquired control of approximately 840 lots through purchase contracts. Notably, Braselton is currently constructing…