Nov 15, 201703:34 PMBlog
Lennar acquisition adds to builder's South Sound portfolio
Lennar Corporation recently acquired smaller competitor CalAtlantic Group, giving the national home builder more of a foothold in the lucrative metro Seattle market with three communities in the South Sound.
The transaction, valued at $9.3 billion, puts Bridges in Auburn, Emerald Pointe in Puyallup and Maple Hills in Covington under the Lennar umbrella. Nationally, the acquisition, which is expected to close in the first quarter of 2018, will create the largest homebuilder in the United States by revenue (D.R. Horton remains the country’s largest by housing completions).
Lennar’s purchase will decrease its competition locally, said Cara Brosius, analyst at industrial research company Freedonia Group.
“By acquiring one of its largest rivals, Lennar is significantly expanding its market share,” she said. “The acquisition will solidify its position as the U.S.' second largest homebuilder, increasing its number of housing completions by over 50 (percent).
“Additionally, mergers and acquisitions may allow large companies to dominate the housing market in certain regions. Firms such as Lennar can see sales increases by purchasing competitors with shared markets.”