D.R. Horton is set to grow its homebuilding business in the state of Iowa, as the homebuilder announced Tuesday that it acquired Classic Builders, one of the largest homebuilders in Des Moines.
According to D.R. Horton, it expects to pay approximately $60 million in cash for Classic Builders and its homebuilding assets.
As part of the acquisition, D.R. Horton acquired approximately 670 lots, 130 homes in inventory, and 40 homes in sales order backlog. D.R. Horton also acquired control of approximately 550 lots through option contracts.
In the last year, Classic closed 238 homes with an average home size of approximately 1,650 square feet and an average sales price of $317,000.
“We are pleased to have Classic Builders join the D.R. Horton family,” D.R. Horton Chairman of the Board Donald Horton said. “Their experienced, dedicated team and well-established building operations make Classic a great addition as we continue to expand our footprint in the Midwest.”
Under the terms of the deal, Classic will operate as a separate division under the D.R. Horton umbrella.
“We are excited to join the largest homebuilder in the country and look forward to continuing to provide superior customer service and growing our business further,” Seth Moulton, vice president of Classic Builders, said.