D.R. Horton, Inc. Acquires the Homebuilding Operations of Westport Homes
ARLINGTON, Texas--(BUSINESS WIRE)--Nov 13, 2018--D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today announced the acquisition of Westport Homes (Westport), a top five homebuilder by volume in Indianapolis and Fort Wayne, Indiana, and Columbus, Ohio. The homebuilding assets acquired include approximately 3,500 lots, 400 homes in inventory and 550 homes in sales order backlog, the majority of which relate to Westport’s Indianapolis and Columbus operations. D.R. Horton also acquired control of approximately 3,200 lots through option contracts. For the twelve months ended October 31, 2018, Westport closed 886 homes ($234 million in revenue) with an average home size of approximately 2,200 square feet and an average sales price of $264,000. D.R. Horton expects to pay approximately $190 million in cash for the purchase, and Westport will operate as a separate division within D.R. Horton.
Donald R. Horton, Chairman of the Board, said, “We welcome Westport Homes to the D.R. Horton family. Their well-established building operations make Westport a great fit for D.R. Horton as we expand our footprint in the Midwest.”
Steve Dunn, President of Westport Homes, said, “Westport has a long-standing tradition of building quality homes and providing excellent customer service. We are excited to join the largest builder in the country and look forward to continuing this tradition.”
About D.R. Horton, Inc.
D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States since 2002. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 81 markets in 27 states across the United States and closed 51,857 homes during its fiscal year ended September 30, 2018. The Company is engaged in the construction and sale of high-quality homes through its diverse brand portfolio that includes D.R. Horton, Emerald Homes, Express Homes and Freedom Homes with sales prices ranging from $100,000 to over $1,000,000. D.R. Horton also provides mortgage financing and title services for homebuyers through its mortgage and title subsidiaries.
Portions of this document may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to D.R. Horton on the date this release was issued. D.R. Horton does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release include that we expect to pay approximately $190 million in cash for the purchase, and Westport will operate as a separate division within D.R. Horton. Forward-looking statements also include that their well-established building operations make Westport a great fit for D.R. Horton as we expand our footprint in the Midwest.
Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: the cyclical nature of the homebuilding industry and changes in economic, real estate and other conditions; constriction of the credit and public capital markets, which could limit our ability to access capital and increase our costs of capital; reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates; the risks associated with our land and lot inventory; our ability to effect our growth strategies, acquisitions or investments successfully; the impact of an inflationary, deflationary or higher interest rate environment; home warranty and construction defect claims; the effects of health and safety incidents; the effects of negative publicity; supply shortages and other risks of acquiring land, building materials and skilled labor; reductions in the availability of performance bonds; increases in the costs of owning a home; the effects of governmental regulations and environmental matters on our homebuilding and land development operations; the effects of governmental regulations on our financial services operations; our significant debt and our ability to comply with related debt covenants, restrictions and limitations; competitive conditions within the homebuilding and financial services industries; the effects of the loss of key personnel; and information technology failures and data security breaches. Additional information about issues that could lead to material changes in performance is contained in D.R. Horton’s annual report on Form 10-K and our most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission.
View source version on businesswire.com:https://www.businesswire.com/news/home/20181113005285/en/
CONTACT: D.R. Horton, Inc.
Jessica Hansen, 817-390-8200
Vice President of Investor Relations
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: RESEARCH SCIENCE
SOURCE: D.R. Horton, Inc.
Copyright Business Wire 2018.
PUB: 11/13/2018 06:55 AM/DISC: 11/13/2018 06:55 AM