Kaufman & Broad Buys Stake in Texas Builder

Kaufman & Broad Home Corp. said it paid $14.1 million for a 50.3% ownership interest in privately held home builder General Homes Corp. The deal is part of a financial reorganization at Houston-based General Homes, which owns or controls 1,200 building lots in the Houston area and has been building more than 400 homes a year. General Homes’ management team will remain in place and will operate the firm as an independent company. The General Homes deal comes only a few months after Kaufman & Broad purchased another Houston-based home builder, Hallmark Homes. The two transactions give Kaufman ownership or control of 5,300 building lots in Texas’ largest city. Westwood-based Kaufman & Broad said it expects to build about 1,400 homes in Houston next year. Kaufman shares fell 50 cents to close at $27.81 on the New York Stock Exchange.