D.R. Horton Inc. (DHI) has acquired the homebuilding operations of Crown Communities, which builds in Georgia, South Carolina, and eastern Alabama. Fort Worth-based D.R. Horton will pay approximately $210 million in cash for the purchase, the company announced today.
Crown will operate as a separate division within D.R. Horton. Crown has a sales order backlog of approximately 420 homes sold, 640 homes in inventory and 2,350 lots. D.R. Horton also acquired control of approximately 3,400 lots through option contracts. In calendar 2013, Crown closed 1,540 homes ($375 million in revenue) with an average home size of approximately 3,500 square feet and an average sales price of $244,000.
Crown is ranked as the 28th largest builder in the United States by Builder Magazine and is the largest builder in the Atlanta market. “We welcome the Crown team to the D.R. Horton family. We are excited about combining the two largest builders in the Atlanta area to establish double-digit market share for D.R. Horton,” said Donald R. Horton, chairman, in a statement. “The acquisition also adds the Augusta, Ga. and Spartanburg, S.C. markets to our expansive geographic footprint, while strengthening our presence in Greenville and Columbia, SC. We believe the combined D.R. Horton and Crown team will be a strong platform for further growth in these dynamic markets in the southeast.” – Robert Francis