By Bill Zeeble, KERA News
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-830488.mp3
Dallas, TX – Dallas based homebuilder Centex, one of the nation's biggest, is being purchased by its larger competitor from Michigan, Pulte Homes. KERA's Bill Zeeble has more
The deal's valued at 3.1 billion dollars. It includes an exchange to Centex shareholders of Pulte stock, with more than half the purchase amount assumed in debt. Pulte's CEO, Richard Dugas Jr said by combining the two industry leaders, a return to profitability would be accelerated.
Both companies have lost millions in the down economy that's hit homebuyers, and therefore homebuilders especially hard. Pulte expects to save 350 million dollars in efficiencies over the next 3 years. Some of those savings usually come from layoffs, but there are no specifics on that yet.