Lennar is buying CalAtlantic Group in a $5.7 billion deal that will create the nation’s largest homebuilder as sales of new homes reach levels not seen in a decade.
The acquisition, which is worth more than $9 billion if $3.6 billion in debt is included, creates a company with a footprint in 21 states. The companies had $17 billion in revenue over the last 12 months.
Homebuilders face rising costs for materials, land, and in the wake of a pair of devastating hurricanes, rising labor costs.
The deal announced Monday is expected to generate annual cost savings of $250 million, with about $75 million in savings expected in fiscal 2018.