Combination Creates Nation’s Largest Homebuilder with Unmatched Brand Portfolio Company Expects to Realize $350 Million in Synergies and Cost Savings Tender to Retire Up to $1.5 Billion of Debt Maturities in Process
BLOOMFIELD HILLS, Mich., Aug 18, 2009 (BUSINESS WIRE) — Pulte Homes (NYSE: PHM) and Centex Corporation (NYSE: CTX) announced that, at a special meeting of shareholders held today by each company, shareholders overwhelmingly approved the merger of Pulte Homes and Centex. Pulte Homes and Centex received votes representing more than 80% and 72%, respectively, of shares outstanding, with more than 99% of these voted in support of the transaction.Under terms of the merger agreement, Pulte Homes will acquire all outstanding shares of common stock of Centex Corporation in a stock-for-stock transaction. Centex shareholders receive .975 shares of Pulte Homes stock in exchange for each Centex share they own. Based on the exchange rate, Pulte shareholders own approximately 68% of the combined company, and Centex shareholders own approximately 32%.
The new Company, with 2008 pro forma closings of 39,000 homes and revenues of $11.6 billion, will continue to trade on the NYSE under the ticker symbol “PHM.” The Company will operate more than 900 communities across 29 states and the District of Columbia, and will serve all major customer segments through its family of brands that includes Pulte Homes, Centex and Del Webb.
Pulte Homes will retain its corporate headquarters in Bloomfield Hills, Michigan.
Richard Dugas, whose previously announced appointment to the positions of Chairman, President and Chief Executive Officer is effective today, said, “Combining these two industry leaders creates tremendous opportunities for our customers, employees and shareholders. Our shared commitment to product quality and customer service, combined with the complementary brands, land positions and building models make this a powerful merger that can accelerate our return to profitability.
“Having already invested thousands of hours in planning, we can begin integration of our organizations immediately and start capturing the cost savings and business benefits that make this merger so compelling. We continue to target $250 million in corporate and field overhead savings and, on August 11, 2009, we announced a tender for $1.5 billion in debt that upon completion will enable us to save approximately $100 million in annual interest expense.”
Effective with the completion of this merger, Timothy Eller, previously Centex’s Chairman and Chief Executive Officer, joins the Company’s Board of Directors as Vice Chairman and will serve as a consultant to the Company for two years.
About Pulte Homes
With its merger complete, Pulte Homes, Inc., based in Bloomfield Hills, Mich., is America’s largest home building company with operations in 29 states and the District of Columbia. The Company has an unmatched capacity to meet the needs of all buyer segments through its brand portfolio that includes Pulte Homes, Centex and Del Webb, as well as its regional brands of DiVosta Homes (Florida) and Fox & Jacobs (Texas). Pulte Mortgage LLC is a nationwide lender offering Pulte customers a wide variety of loan products and superior service.