Home builder Lennar Corp. (LEN) announced on Tuesday that it has signed a definitive agreement to acquire Rausch Coleman Homes, a residential construction company headquartered in Fayetteville, Arkansas. Specific terms of the deal have not been disclosed.
Through this acquisition, Lennar will gain access to Rausch Coleman's homebuilding operations, which are projected to deliver about 5,000 homes with an average sales price of $230,000 in the 2024 calendar year.
Aligning with Lennar's "land light" strategy, the company plans to delegate the purchase and optioning of all Rausch Coleman's land assets to a third party.
This acquisition will enable Lennar to extend its market presence into new territories, including Arkansas, Oklahoma, Alabama, Kansas, and Missouri, while bolstering its existing presence in Texas, Oklahoma, Alabama, and Florida.
Furthermore, the deal will contribute to Lennar's community count and home deliveries, integral components of its growth objectives for 2025. This transaction is anticipated to close during Lennar's first fiscal quarter of 2025.
