Schuler expects business as
usual even after merger

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By Dave Segal
dsegal@starbulletin.com

Schuler Homes Inc. has an extended family now, but President Jim Schuler said yesterday it will be business as usual for the Honolulu-based home builder despite the company's merger Thursday with D.R. Horton Inc.

Arlington, Texas-based Horton, which acquired Schuler Homes in a $1.6 billion deal that included about $712 million in debt, finalized the deal when 98 percent of the shareholders of the two companies approved the acquisition.

Schuler, who will remain as president of Schuler, said no Hawaii jobs will be lost due to the merger. He said Schuler Homes' small Oregon and Arizona divisions will be folded into Horton's larger operations in those states but that he will continue to oversee Schuler Homes' divisions in Hawaii, Washington, California and Colorado.

California has five divisions, which operate under the Schuler Homes and Western Pacific Housing names, while the Washington division operates under Stafford Homes, Colorado is run under Melody Homes and Hawaii operates under Schuler Homes. Schuler acquired Melody Homes and Stafford Homes in 1997 and Western Pacific Housing last year. Mike Jones, Schuler's son-in-law, is president of the Hawaii division.

"People have asked me how things are going to change but I tell them that I'll get up and go back to work just as I did before the deal closed," Schuler said.

Schuler, who also will be a senior vice president for Horton and a member of its board, will be the only Hawaii representative on the slate.

"We've been working on (the deal) since August," Schuler said. "This is a great transaction for shareholders and employees to become part of the No. 2 builder in America.

"There's also an awful lot of benefits that come out of this -- better purchasing power on products, a better purchasing opportunity for land and reduced cost for money. This provides lots of growth oppor- tunities for all of the employees of Schuler Homes -- all the different divisions. It was an absolutely great financial trans- action for all the shareholders in today's market."

Schuler Homes' stock, which hit a 20-month low of $5.56 on June 21, 2000, was trading at $12 prior to the deal being announced on Oct. 23, 2001. The stock, which hit $22.12 Thursday before it was delisted from the Nasdaq, appreciated 84.3 percent from the announcement date. Horton's stock, which trades under the ticker DHI on the New York Stock Exchange, closed yesterday down 69 cents at $36.31. Its shares are up 11.9 percent this year.