Fort Worth-based D.R. Horton Inc. (NYSE: DHI) agreed to buy the homebuilding operations of Seattle-based Pacific Ridge Homes for about $72 million in cash to expand in the U.S. Northwest.
The purchase includes about 350 lots, 90 homes in inventory and 40 homes in order backlog, D.R. Horton also acquired control of approximately 400 lots through option contracts.
For the twelve months ended March 31, 2015, Pacific Ridge closed 182 homes ($79 million in revenue) with an average home size of approximately 2,600 square feet and an average sales price of $436,000. D.R. Horton will pay approximately $72 million in cash for the purchase, and Pacific Ridge will operate as a separate division within D.R. Horton
“Pacific Ridge has an excellent reputation for quality and service,” D.R. Horton Chairman Donald R. Horton said in the statement. “Their well-established building operations make Pacific Ridge a great fit for D.R. Horton as we look forward to expanding our presence in the greater Seattle area.”
D.R. Horton, the biggest U.S. homebuilder, operates in 29 states. The company completed sales of 32,504 homes in the year through March, according to the statement.