Apollo-owned US housebuilder New Home Co is acquiring Nasdaq-listed competitor Landsea Homes in a $1.2bn (€1.1bn) take-private deal.
New Home Co said it is offering Landsea Homes shareholders $11.30 cash for each share held, an amount that represents a 61% premium to the last closing price of Landsea Homes shares.
The acquisition gives Landsea Homes a $1.2bn enterprise value and is supported by a $650m equity injection from Apollo funds, which have held a majority stake in New Home since 2021.
Once the deal is completed, the combined New Home and Landsea Homes company will offer homebuyers a range of housing options, including single-family detached and attached residences, across various markets in Arizona, California, Colorado, Florida, Oregon, Texas and Washington.
The combined company will be led by Matthew Zaist, president and CEO of New Home.
Zaist said: “Our acquisition of Landsea Homes is an important next step in New Home’s long-term growth strategy. By bringing together two highly complementary businesses and teams with shared customer-first values, we will further scale our platform nationally and help even more buyers realise the dream of homeownership.”
Peter Sinensky, partner at Apollo and a member of New Home’s board of directors, said: “This transaction underscores our high conviction in the housing market opportunity and the teams at New Home and Landsea Homes. Both companies are on attractive growth trajectories individually, which will be further accelerated and augmented by this combination.
“We believe the companies’ shared vision as well as cultural and operational alignment is a winning formula for success, and we are pleased to continue supporting the business with Apollo’s considerable resources behind it.”
John Ho, CEO of Landsea Homes, said: ”At Landsea Homes, our mission has always been to create sustainable, high-performance homes that offer a better way to live.
“We believe this transaction with New Home will deliver immediate cash value to our stockholders at a significant premium and provide us with a strong, well-capitalised partner to accelerate our next phase of growth.”
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