In an unprecedented $5.2 billion dollar move, two of the country’s top new home builders have announced that they are merging, thus creating the fourth largest homebuilding company by revenue in the United States. Standard Pacific and The Ryland Group, both based in Southern California, will collectively own or control 74,000 home sites. In addition, this merger brings Standard Pacific to the metro Atlanta market with the creation of a new division.
Combining the companies is expected to save approximately $50 to $70 million dollars per year, and home sales are projected to bring in a combined $5.1 billion in revenue per year. The newly formed company will now cover more than 41 metropolitan areas with 538 active communities in 17 states. The two companies together present an impressive portfolio of homes, which range from entry-level to luxury and offer home buyers quality construction, elegant details and customizable options. Current Ryland Chief Executive Officer, Larry Nicholson, who has been named CEO, will lead the merged company, which has not chosen a new name. Standard Pacific’s current CEO, Scott Stowell, will become the Executive Chairman.
In a press release issued by 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 five 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.”
The merger of the two companies is expected to be completed in early fall of 2015.
For information on Standard Pacific Homes, visit www.StandardPacificHomes.com.
For information on Ryland Homes, visit www.Ryland.com.