FORT WORTH -- D.R. Horton announced its first acquisition in a decade Wednesday, saying it has bought the home-building operations of Breland Homes, which operates in Alabama and Mississippi.
Terms were not disclosed. The acquisition gives new markets to Fort Worth-based Horton, the nation's largest home builder, in Huntsville and the Mississippi Gulf Coast.Adding Breland will expand Horton operations in Mobile and Baldwin County, Ala., the company said.The deal is the latest sign of recovery for the housing market and Horton.Last month, Horton reported its sixth straight quarterly profit and its best quarterly performance since before the housing crisis. Its pretax income of $72.2 million in the quarter ending June 30 was its best since the second quarter of 2007.Horton, founded in 1978, last expanded by acquisition in 2002 when it bought Schuler Homes, a major player in Hawaii and the western United States. Horton acquired 17 other home-building companies from 1994 to 2002."Breland Homes has developed an excellent reputation for quality and service, and we welcome Breland to the D.R. Horton family," Chairman Donald Horton said in a statement.The Breland assets included about 320 homes in inventory and 1,020 finished lots. Horton said it will also control an additional 3,700 lots through option contracts.Last year, Huntsville-based Breland closed 684 homes and was ranked as the 38th-largest U.S. builder by Builder Magazine. Breland's average home is about 2,200 square feet, with an average sales price of $200,000.By comparison, Horton closed 18,302 homes in the 12 months ending June 30. Horton operates in 75 markets in 26 states.Its stock (ticker: DHI) closed down 22 cents, or 1.2 percent, at $18.11 on Wednesday.Donald Tomnitz, Horton's CEO and president, told analysts during an earnings call in July that the company has been moving into smaller markets and increasing its community count.In the first nine months of the fiscal year, Horton said, it spent $938 million on land, lots and development costs, up $582 million from the same period the prior year.Sandra Baker, 817-390-7727Twitter: @SandraBakerFWSTHave more to add? News tip? Tell us
