LOS ANGELES (October 2, 2002) – Today, KB Home (NYSE: KBH), one of the nation’s largest homebuilders, announced that it has completed the acquisition of Orlando, Fla.-based American Heritage Homes for approximately $74 million, including the assumption of roughly $46 million in debt. The acquisition successfully positions KB Home to become one of the largest homebuilders in Central Florida and is consistent with the Company’s ongoing strategy of building dominant market positions in the nation’s fastest-growing housing markets.American Heritage Homes delivered more than 800 single-family homes in Orlando and Tampa in 2001, generating revenues of approximately $140 million. It currently controls more than 4,000 lots in the area.KB Home entered the Florida market in July 2001 with the acquisition of Jacksonville-based Trademark Home Builders, Inc., and, in 2002, expanded its operations through the launch of a start-up division in Tampa.
“We are pleased to complete this acquisition of one of Central Florida’s most respected homebuilders,” said Bruce Karatz, chairman and CEO of KB Home. “KB Home has a strong track record of quickly establishing leading market positions in every market in which we choose to operate, and Florida is no exception. With the acquisition of American Heritage Homes now complete, we look forward to taking further advantage of the substantial opportunities for growth and expansion in Florida’s most dynamic and fastest-growing regions.”
The results of American Heritage Home’s operations will be included in KB Home’s consolidated financial statements from the date of acquisition.
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