New Home Co. (New Home) and Landsea Homes Corporation (Landsea Homes) have announced the completion of New Home's acquisition of Landsea Homes, creating a privately-held, top-25 national homebuilder with a strong foundation for growth.
The acquisition was funded through various sources, including an equity contribution from funds managed by affiliates of Apollo, land banking capital from Millrose Properties, and a senior notes offering by New Home.
As a result of the acquisition, Landsea Homes' common stock has been delisted from NASDAQ, and Landsea Homes shareholders are receiving $11.30 per share in cash for each share of Landsea Homes' common stock they owned.
Financial advisors to New Home included J.P. Morgan Securities LLC, RBC Capital Markets, Vestra Advisors, and Wells Fargo, while Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to New Home. Moelis & Company LLC acted as the exclusive financial advisor to Landsea Homes, with Latham & Watkins LLP serving as legal counsel to Landsea Homes.
New Home Co. is a diversified, asset-light homebuilder focused on the design, construction, and sale of attainable, consumer-driven, attached and detached single-family homes targeting entry-level and first-time move-up buyers within high-growth markets in the West, Central, and Pacific Northwest regions.
On the other hand, Landsea Homes is a residential homebuilder based in Dallas, Texas, that designs and builds best-in-class homes and sustainable master-planned communities in desirable markets across the United States. The company has been recognized for its achievements, being honored as the Green Home Builder 2023 Builder of the Year and the 2022 winner of the prestigious Builder of the Year award.
The acquisition signifies an important step in New Home's long-term growth strategy, aiming to leverage greater scale, market diversity, and a shared focus on delivering exceptional customer experiences. The combined company is positioned to enhance its offerings to homebuyers and extend its platform further.
The acquisition and subsequent delisting of Landsea Homes' stock indicate a significant transformation in the landscape of homebuilders, as the two companies join forces to create a stronger and more competitive entity in the industry. Following these announcements, the company's shares moved 0.0%, and are now trading at a price of $11.31. Check out the company's full 8-K submission here.
