Pulte Homes has sold its Mexico home-building business to a group of investors in a move toward curtailing its international operations to focus more on the U.S. market, the home builder said today.
The group of investors is led by affiliates of Walton Street Capital, a Chicago based real estate investment company, and advised by Banc of America Securities and Hipotecaria Su Casita, Mexico’s largest independent Sofol. Financial terms of the transaction were not released.
“As previously announced, we have been evaluating long-term strategic alternatives with regard to all of Pulte’s international operations,” said Roger A. Cregg, executive vice president and chief financial officer. “With the sale of our Mexico home-building operation, we have effectively exited our international business allowing us to focus all our resources toward further expanding Pulte’s share of the U.S. housing market.”
Ira Schulman, principal of Walton Street Capital, said the developing Mexican economy and Pulte’s already established home building business will position the group to become a leader in the country’s market for new homes.
Pulte Mexico, which began operations in 1994, was on track to deliver more than 7,000 homes in 2005. As a result of this transaction, Pulte’s Mexico home-building operation will be reported as “discontinued operations” effective with the company’s fourth-quarter 2005 financial results.
Bloomfield Hills, Mich.-based Pulte Homes has operations in 54 markets in 28 states.
Pulte Homes stock (NYSE: PHM) traded at $40.54 this morning.
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