D.R. Horton has announced its acquisition of the homebuilding operations of Terramor Homes, a homebuilder in Raleigh, N.C.
The company expects to pay approximately $60 million in cash for the purchase. Following the acquisition, Terramor will operate as a separate division within D.R. Horton.
In addition to construction and home sales, D.R. Horton also provides mortgage financing and title services for homebuyers through its mortgage and title subsidiaries.
With the deal, D.R. Horton acquired homebuilding assets including approximately 305 lots, 156 homes in inventory, and 63 homes in sales order backlog. The company also acquired control of approximately 535 lots through option contracts.
“We are excited for the Terramor team to join the D.R. Horton family. 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,” D.R. Horton Chairman Donald R. Horton said.
“For the past 10 years, we have aimed to exceed the expectations of each Terramor homeowner. We are excited to join the largest homebuilder in the country and look forward to continuing to help bring our homeowners’ dreams to life,” Terramor Homes co-founder Pablo Reiter said.
For the trailing twelve months ended Nov. 30, Terramor closed 273 homes for $85.7 million in revenue with an average home size of approximately 2,300 square feet and an average sales price of $314,000.