NEW YORK – Lennar is buying CalAtlantic Group in a $5.7 billion deal that will create the nation’s largest homebuilder as sales of new homes reach levels not seen in a decade.
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The acquisition, which also includes $3.6 billion in debt, creates a company with a footprint in 21 states. The companies had $17 billion in revenue over the last 12 months.
D.R. Horton of Texas is currently the nation’s largest homebuilder by revenue.
Lennar is based in Miami and CalAtlantic is based in Arlington, Virginia.
The stock deal will give CalAtlantic shareholders 0.885 shares of Lennar stock, with an implied value of $51.34 per share, a 27 percent premium to CalAtlantic’s closing price on Friday.
Current CalAtlantic shareholders will own about 26 percent of the combined company.
