LOS ANGELES (September 18, 2002) – Today, KB Home (NYSE: KBH) announced that it had signed a definitive agreement to acquire Orlando, Fla.-based American Heritage Homes. Scheduled to be completed by the end of this month, the acquisition will position KB Home among Central Florida’s largest homebuilders and furthers the Company’s strategy of seizing market position in the nation’s fastest-growing housing markets.“Our growth strategy is simple: in addition to building our business from scratch, we continually seek out established local builders whose reputations, business models and commitment to quality are consistent with our own,” said KB Home Chairman and CEO Bruce Karatz. “American Heritage has served many Florida buyers over the years, and we look forward to building on that legacy of excellence under the KB Home name.”
KB Home gained a foothold in Florida in July 2001 with the acquisition of Jacksonville-based Trademark Home Builders, Inc. and continued in 2002 with a newly launched division in Tampa, which is expected to deliver its first homes this fall. American Heritage reported deliveries in 2001 of more than 800 single-family homes in Tampa and Orlando.
Noting that Florida led the nation in building permits issued during the first months of 2002, Karatz said he believed the American Heritage acquisition could help KB Home stage a repeat of its Texas success story. “Before 1996, KB Home had no presence at all in Texas,” he said. “Through a combination of smart acquisitions and our own strategic expansion, we’re now the state’s largest builder—and have been for several years. We plan to use these successful strategies as a template for our efforts in Florida.”
According to the U.S. Census, Florida added 3 million people between 1990 and 2000, while the total number of housing units increased by only 1.2 million. The Florida Association of Homebuilders reports that Florida is one of five states that will account for more than half of the population growth in the 25- to- 64-year-old age group in the nation during the next decade.
"Our two companies share a commitment to helping American families realize the dream of homeownership,” observed Mark Ezzard, CEO and president of American Heritage. “As part of the KB Home family, we at American Heritage will be able to more aggressively pursue that goal here in the thriving Orlando market. We’re proud to be joining the KB Home team.”
KB Home is one of America's largest homebuilders, with domestic operating divisions in some of the fastest-growing areas of the country including: West Coast--California; Southwest--Arizona, Nevada and New Mexico; and Central--Colorado, Florida and Texas. Kaufman & Broad S.A., the Company's majority-owned subsidiary, is one of the largest homebuilders in France. In fiscal 2001, the Company delivered homes to 24,868 families in the United States and France. It also operates KB Home Mortgage Company, a full-service mortgage company for the convenience of its buyers. Founded in 1957, KB Home is a Fortune 500 company listed on the New York Stock Exchange under the ticker symbol "KBH." For more information about any of KB Home's new home communities, call 888-KB-HOMES or visit the Company's Web site at kbhome.com.
For Further Information Contact:
Debra Hotaling, Media Contact
(310) 231-4015
dhotaling@kbhome.com