IRVINE, Calif. - In a significant move within the homebuilding industry, New Home Co. has agreed to purchase Landsea Homes Corporation in an all-cash transaction valued at approximately $1.2 billion. Under the terms of the agreement, Landsea Homes shareholders will receive $11.30 per share, which is a 61% premium over the closing share price on May 12, 2025.
The acquisition is expected to close early in the third quarter of 2025, pending customary closing conditions and the tender of a majority of Landsea Homes’ outstanding common stock. Once completed, Landsea Homes will become privately held and will no longer be listed on Nasdaq.
New Home, a portfolio company of Apollo Global Management funds, is set to become a top-25 national homebuilder, expanding its footprint across 10 high-growth markets in the United States. The combined entity aims to generate close to 4,000 annual closings and will focus on an asset-light, returns-driven strategy. This approach aligns with Apollo’s proven track record of generating returns, as evidenced by their consistent dividend payments for 15 consecutive years and current dividend yield of 1.42%. For more detailed analysis and insights, investors can access comprehensive financial metrics through InvestingPro, which offers exclusive access to 12 additional ProTips and extensive financial data.
Matthew Zaist, President and CEO of New Home, emphasized the complementary nature of the two businesses and the shared commitment to quality construction and customer service. John Ho, CEO of Landsea Homes, expressed confidence that the deal would provide immediate cash value to shareholders and support the company’s growth ambitions.
The acquisition is backed by Apollo Funds, which will contribute $650 million of new cash equity. With Apollo’s strong revenue base of $24.39 billion and healthy free cash flow of $4.2 billion in the last twelve months, the firm demonstrates ample capacity to support this investment. Additional land banking capital to support the acquisition is being provided by Millrose Properties.
Financial advisory roles were filled by J.P. Morgan Securities LLC, RBC Capital Markets, Vestra Advisors, and Wells Fargo for New Home, while Moelis & Company LLC advised Landsea Homes. Legal counsel for the respective companies was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Latham & Watkins LLP.
This strategic move is based on a definitive agreement between the two companies and has been unanimously approved by the Landsea Homes Board of Directors. The transaction is structured to begin with a tender offer followed by a second-step merger at the same share price for any remaining shares.
The information in this article is based on a press release statement.
In other recent news, Apollo Global Management reported its Q1 2025 earnings, revealing an adjusted net income of $1.1 billion or $1.82 per share, which fell short of analysts’ expectations of $1.93 per share. The company’s revenue was slightly below forecast at $978 million compared to the expected $981.9 million. Despite the earnings miss, Apollo demonstrated robust growth with assets under management increasing by 17% year-over-year to $785 billion and record inflows of $43 billion. Additionally, Apollo announced a 10% increase in its cash dividend to $0.51 per share. In a strategic move, Apollo-managed funds acquired Hav Energy LNG Holding AS, a maritime LNG infrastructure platform, from Norwegian private equity firm HitecVision. The acquisition includes a portfolio of 10 LNG carriers, with vessels expected to be delivered in 2025 and 2026. Meanwhile, JPMorgan adjusted its price target on Apollo Global Management shares, reducing it to $151 from the previous $161, while maintaining an Overweight rating. This adjustment follows Apollo’s earnings shortfall attributed to lower-than-anticipated principal investment income.
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