News & Press Release Distribution Service
Pulte to acquire rival homebuilder Centex for $1.3B
2009-04-08 17:37:31 (GMT) (Caymanmama.com - Business Real Estate News News)
Pulte Homes, the fourth-largest homebuilder in the nation, has announced that it will purchase the third largest, Centex Corp, for a price tag of $1.3 billion worth of stock
Houston, Texas (CaymanMama.com) — Pulte Homes, the fourth-largest homebuilder in the nation, has announced that it will purchase the third largest, Centex Corp, for a price tag of $1.3 billion worth of stock as it finds ways to save revenue and survive the housing crisis.
Pulte said the purchase would create the largest national homebuilder.
Centex shares increased 28 percent to $9.75 during early New York Stock Exchange trading on Wednesday, while Pulte dropped 3.6 percent to $10.38.
“It’s pretty normal consolidation in a very troubled industry,” said Gary Shilling, president of investment research firm A. Gary Shilling & Co. “It’s exactly what you’d expect. These companies are obviously in big trouble.”
According to Reuters, “Experts predict more strategic stock-for-stock deals this year in distressed sectors, as they help companies reduce costs while allowing shareholders to benefit when conditions improve. With such transactions, companies in struggling industries can bulk up without having to deplete much-needed cash or trying to raise scarce and costly debt financing.”
Pulte, which will absorb some $1.8 billion of Centex debt, will own approximately 68 percent of the combined company. It said it would carry out an annual cost savings of nearly $350 million from the purchase and seeks to withdraw over $1 billion of debt maturities before the end of 2009.
“You have both weakness in sales and write downs on land and existing inventory of houses,” Shilling said. “All these things are putting pressure for consolidation in the industry.”
CaymanMama.com - Press Release Distribution Service
Comments
Articles
- Child Custody: A Guide to the Holidays for Separated and Divorced Parents
- Raleigh Divorce Lawyers Create Web Portal with Info on North Carolina Family Law
- Child Support in North Carolina: Part I
- Be Instantly Accessible With The Right Legal Website Design
- Vlogging an Emerging Internet Marketing Trend for Lawyers
- The Importance of a Law Firm’s website URL For SEO
- SEO Maybe the Most Cost Effective Marketing for Lawyers
- Simple Steps for Great Law Firm Internet Marketing
- Weighing SEO and PPC for Law Firm Marketing
- Social Media Marketing Reaches Audience More Effectively
Other News / Press Releases
- WillowTree Advisors Streamlines Operations for Clients
- OnTray Media® Launches “ROCKS, PAPER SCISSORS” Campaign
- Parcel2Go hails UK’s entrepreneurial spirit
- Crevier MINI - Los Angeles MINI Cooper Fans - New Highgate Special Edition
- Features Lists are Vital to Ensure Maximum Media Coverage, Says Punch
- Scottish broadband plan would be boon to small businesses, says Parcel2Go
- Vote For Best “Do-It-Yourself” Home Improvement Project & Win…
- Apparel Deals Officially Launches an Online Website
- Fewer Mich. Thefts Don’t Necessarily Mean Auto Insurance Price Cut
- Hyundai Drivers Most Likely to Stick with Brand
