Thursday , 29 September 2016
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Standard Pacific Homes and Ryland to Merge to Form Fourth Largest Home Builder

IRVINE and WESTLAKE VILLAGE, Calif. — Standard Pacific Corp. The Ryland Group and planning to merge in a $5.2 billion deal that will make the combined home building firm the fourth largest home builder in the nation.

The builders announced Sunday night that their respective boards of directors have unanimously approved a merger agreement.

The companies characterized the transaction as a “merger of equals.” Combined, the new company will own or control 74,000 home sites.

After the merger, scheduled to be completed this fall, homes will be sold under a new brand name, which will be announced before the merger closes.

Last year, Standard Pacific and Ryland sold a combined 12,633 homes, which would place it behind only D.R. Horton, Lennar and Pulte as the nation’s biggest builders.

Standard Pacific’s shareholders will own 59 percent of the new company and Ryland’s will own 41 percent.

Standard Pacific President and CEO Scott Stowell said, “Combining two industry leaders with nearly 100 years of homebuilding experience between them puts us in a strong position to benefit from the continued housing market recovery.  With this merger we gain both geographic and product diversification, expanding our reach and enhancing our growth prospects in the entry level, move-up and luxury market segments.  Together, we will build homes in 20 of the top 25 MSAs in the United States and will enjoy top 5 market share in 15 of these MSAs.”

Ryland President and CEO Larry Nicholson said, “Today our industry reaches a significant milestone as two of its best operators combine forces.  With similar cultures and long histories of crafting quality homes and providing superior customer service, we are each proud of where we’ve been and look to the future confident that we will be better together. Scott and I look forward to working together as we lead our combined companies to an even higher level of construction quality, customer satisfaction and operational excellence.”

Currently both companies’ headquarters are located in Southern California — Standard Pacific in Irvine and Ryland in Westlake Village.  “Given the size of the combined company, within the next two years the combined company expects to develop a corporate presence on the east coast, while continuing to maintain a corporate presence in California,” the company said in a press release.

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