D.R. Horton makes it official; Riggins acquisition worth $107 million
Arlington, Texas-based D.R. Horton Inc., the nation’s largest homebuilding company, said Thursday (Dec. 15) it will pay $107 million in cash for the assets of Fayetteville builder Riggins Custom Homes and related entities.
Included are approximately 3,000 lots, 170 homes in inventory and 173 homes in sales order backlog.
The Northwest Arkansas Business Journal first reported the deal on Dec. 6.
“We are excited for the Riggins team to join the D.R. Horton family.,” Chairman Donald R. Horton said in a statement. “Their quality building operations and local market expertise make Riggins an excellent extension as we grow our local start-up market position in Northwest Arkansas.”
Fayetteville homebuilders Darin and Kevin Riggins started building homes 30 years ago and have built and developed residential neighborhoods throughout Northwest Arkansas.
For the twelve months that ended Nov. 30, 2022, Riggins closed 153 homes ($48 million in revenue) with an average home size of approximately 1,925 square feet and an average sales price of $313,600.
“We have truly enjoyed serving our clients and providing quality homes in Northwest Arkansas for the last 30 years,” the Riggins brothers said in a statement. “Riggins Custom Homes wouldn’t be where it is today without the help of our amazing employees, vendors and subcontractors. We are excited and look forward to seeing the great value D.R. Horton will bring to the families of Northwest Arkansas.”
Founded in 1978 in Fort Worth, D.R. Horton has been the largest homebuilder by volume in the U.S. for 20 years. It operates in 106 markets in 33 states and closed 83,518 homes during its most recent fiscal year, which ended Sept. 30, 2022.
D.R. Horton will combine the Riggins operations with its Northwest Arkansas operations. The company first dipped its toe into the Northwest Arkansas market more than a year ago. According to Benton County property records, the company bought 28 lots from Paul and Connie Church in Gentry’s Pioneer Woods in the fall of 2021 for $1.03 million.
D.R. Horton recorded its first Arkansas sale this past April, a 2,031-square-foot, four-bedroom residence for $276,790 ($136.28 per square foot).
D.R. Horton is now building homes in Siloam Springs’ Heritage Ranch neighborhood off North Carl Street, north of North Mount Olive Street.
The company builds and sells single-family homes through multiple brands, including D.R. Horton, Emerald Homes, Express Homes and Freedom Homes. D.R. Horton also provides mortgage financing, title and insurance agency services through in-house subsidiaries. Prices range from $150,000 to more than $1 million.
According to Builder magazine, D.R. Horton had $27.9 billion in revenue in 2021. The company reported $15.05 billion in revenue during the first fiscal six months of 2022, better than the $12.38 billion in the same period of the previous year. Net income in the first six months was $2.58 billion, also better than the $1.72 billion in the same period of the previous year.
D.R. Horton has ties to Arkansas through its chairman and founder, Donald Horton. He was raised in Marshall (Searcy County), where his father worked as a cattleman and a Realtor. After studying at the University of Central Arkansas and the University of Oklahoma, Horton left school in 1972 and returned to Marshall, where he joined his family’s real estate business.
Horton moved to Fort Worth in 1977 and built his first home one year later, launching a business that is now one of the most prolific homebuilding companies in the U.S.
The company completed its initial public offering of stock in 1992. Shares (DHI: NYSE) were trading at $89.56 during morning trading Friday. During the past 52 weeks, the share price has ranged between $110.45 and $59.25.