Kaufman & Broad to Buy Arizona Builder

Los Angeles-based Kaufman & Broad Home Corp. has agreed to buy Estes Homebuilding Co. for $47 million. The acquisition would mark the third time Kaufman has purchased a home builder in recent weeks, as the firm seeks to build up its share of sales in major Western markets. Tucson-based Estes is expected to produce 850 homes in Tucson and Phoenix this year and generate $100 million in revenue, Kaufman said. Family-operated Estes owns and controls 2,600 building lots in the two Arizona cities. The combination of Kaufman’s Arizona division and Estes should result in the completion of about 2,000 homes in that state in 1999. Kaufman delivered about 11,500 homes in the fiscal year ended Nov. 30. Kaufman & Broad rose 31 cents to close at $31.88 on the New York Stock Exchange.