Pulte Homes Buying Centex in $1.3 Billion Deal

Bloomfield Hills, MI, April 8, 2009--Pulte Homes, Inc. and Centex Corporation are merging in a stock-for-stock transaction valued at $1.3 billion, including $1.8 billion of net debt.

The deal will create the nation's largest home builder.

Pulte and Centex delivered more than 39,000 closings last year with combined pro forma revenues of $11.6 billion. The combined company, according to a press release, will have the strongest liquidity position among its peer group with more than $3.4 billion of cash as of March 31.

Under the terms of the agreement, Centex shareholders will receive 0.975 shares of Pulte common stock for each share of Centex.

"Combining these two industry leaders with proud legacies into one company puts us in an excellent position to navigate through the current housing downturn, poised to accelerate our return to profitability," said Pulte President and Chief Executive Officer Richard J. Dugas, Jr.

"Centex's significant presence in the entry level and move-up categories is complemented by Pulte's strength in both the move-up and active adult segments, the latter through our popular Del Webb brand. Together we will have considerable presence in more than 59 markets across America."