Merge Creates Fourth Largest Homebuilding Company
- Oct 06, 2015
Irvine, Calif.—Standard Pacific Corp. and The Ryland Group Inc., have merged into a 50/50 partnership under the new company, CalAtlantic Group Inc., and the brand, CalAtlantic Homes, creating the fourth largest homebuilding company in the United States.
“Combining two industry leaders with nearly 100 years of homebuilding experience puts us in a strong position to benefit from the continued housing market recovery,” Scott D. Stowell, CalAtlantic Group Inc.’s executive chairman, said. “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.”
As of June 30, 2015, the newly formed company had an equity market capitalization of approximately $5.4 billion, an enterprise value of approximately $8.4 billion, and owned or controlled approximately 76,000 home sites.
The combined company anticipates that production, purchasing and other synergies from the transaction could result in annual cost savings of between $50 million to $70 million. CalAtlantic expects to realize a significant portion of the estimated cost savings by late 2016.
“Today our industry reaches a significant milestone as two of its best operators combine forces in the belief that our combined future is brighter,” Larry T. Nicholson, CalAtlantic Group Inc.’s president & CEO, said. “With similar cultures and long histories of designing and building quality homes and providing exceptional customer service, Standard Pacific and Ryland are each proud of where we’ve been and are confident in our future together as CalAtlantic Homes.”
The board of directors of the CalAtlantic Group, Inc. consists of 10 persons, five Standard Pacific directors (Scott D. Stowell, Bruce A. Choate, Douglas C. Jacobs, David J. Matlin and Peter Schoels) and five Ryland directors (William L. Jews (Lead Independent Director), Larry T. Nicholson, Charlotte St. Martin, Robert E. Mellor and Norman J. Metcalfe).
CalAtlantic Group Inc. offers well-crafted homes in thoughtfully designed communities that meet the desires of customers across the homebuilding spectrum, from entry level to luxury, in 41 Metropolitan Statistical Areas spanning 17 states.