Pulte homes to purchase CentexApril 8th, 2009 - 11:35 pm ICT by GD
Centex Corporation will be soon purchased by Pulte Holmes Inc. for $1.3 billion. It is an all-stock deal and this deal will help the merged organization sail over the worst recession since the 1930s. The combination of the two firms will make the largest house builder of U.S. in terms of revenue.
Pulte agreed to pay .975 for each share of Centex,which is 38% above the yesterday’s closing price, valuing Centex at $10.50 . A Texas based senior bond analyst working for Gemmie Credit LLC, Vicky Bryan, finds this deal to be healthy since it will give enough financial solvency for both the firms to survive without any help from the banks.
Both the companies are looking forward towards the deal with immense hope. The companies are predicting that this deal can help them survive the most severe and prolonged housing slump. The housing slump that has hit U.S. since 1930s has slashed down the home sales by more than 75% from their crest in July 2005. The new deal will allow Pulte to access the states like Texas and Carolina, which have strong new home sales.
According to the CEO of Pulte, Richard Dugas, the deal will help the firm to navigate through the present housing downturn and will also accelerate the profit. After the acquisition, the two firms together will have a presence in more than 59 regions in America.
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