CalAtlantic Group has been bought out by Miami-based Lennar Corporation in a deal valued at $9.3 billion. Lennar will pay $5.7 billion and assume $3.6 billion in debt for the Arlington County, VA-based builder. The sale will make the combined company the largest home builder in the country and will give it a top 3 ranking in 24 of the top 30 markets. The implied value of the deal is $51.34 per share, representing a premium of 27 percent to CalAtlantic’s Friday close. The firm will now control 240,000 homesites and 1,300 communities in 49 markets across 21 states. Together, Lennar and CalAtlantic reported revenues of more than $17 billion last year and a market cap of about $18 billion. The transaction, which still needs approval from the shareholders of both companies, is expected to close in the first quarter of 2018. Once completed, CalAtlantic stockholders would own about 26 percent of the combined company.
