Hovnanian Buying CraftBuilt

The deal puts the homebuilder in South Carolina and Georgia.
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Hovnanian Enterprises

(HOV) - Get Report

announced the acquisition of CraftBuilt Homes. This takeover enables it to enter the coastal markets of South Carolina and Georgia.The terms of the deal were not disclosed, except for the fact that the purchase price was paid in cash.

Hovnanian said that last year CraftBuilt Homes delivered 220 homes with revenue of about $42 million. CraftBuilt Homes currently has about 100 homes in contract backlog, with a sales value of $22 million and owns or controls about 2,800 lots throughout its markets.

The company also said that it will not be booking any goodwill in conjunction with the transaction. Post-acquisition the company expects to be within its targeted ratio of 50% net debt to capitalization at its fiscal year end.

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