Arlington-based D.R. Horton, Inc. (NYSE:DHI), is buying another homebuilder, just a few days after announcing it was purchasing Classic Builders in the Midwest, said Dec. 12 it was acquiring Terramor Homes, a top ten homebuilder by volume in Raleigh, North Carolina, for about $60 million.
The homebuilding assets acquired include approximately 305 lots, 156 homes in inventory and 63 homes in sales order backlog. D.R. Horton also acquired control of approximately 535 lots through option contracts. For the trailing twelve months ended November 30, 2018, Terramor closed 273 homes ($85.7 million in revenue) with an average home size of approximately 2,300 square feet and an average sales price of $314,000. D.R. Horton expects to pay approximately $60 million in cash for the purchase, about the same price it paid for Classic Builders, the deal it announced on Dec. 6. Terramor will operate as a separate division within D.R. Horton.
“We are excited for the Terramor team to join the D.R. Horton family,” said Donald R. Horton, chairman of the board. “Their quality building operations and local market expertise make Terramor an excellent extension as we strengthen our local market position in Raleigh and the surrounding markets.”