By Vincent Salandro | Builder
D.R. Horton and Vidler Water Resources have entered a definitive merger agreement pursuant to which the home builder will acquire the company for $15.75 per share in an all-cash transaction, which represents a 19% premium to the 90-day volume-weighted average price and a 39% premium to Vidler’s book value of equity.
Vidler owns a portfolio of premium water rights and other water-related assets in the Southwest U.S. in markets where D.R. Horton operates that require water for development but face a lack of adequate supply, according to a news release. According to D.R. Horton, Vidler has experience accessing, developing, and realizing value for premium water assets while expertly navigating local regulations and working with governmental entities.
After the acquisition closes, Vidler will operate as a separate operating division within D.R. Horton.
