Mon, Jun. 15, 8:25 AM
- “We’re not going to have 22 publicly traded companies that are significant enough in size to have good liquidity," says John Burns, who heads a homebuilding research firm, predicting more consolidation in the industry.
- Standard Pacific (NYSE:SPF) CEO Scott Stowell - who will be the chief of the combined company: “We’re out in front of what we think will be a wave of consolidation in our industry."
- The two builders have little in the way of overlap, reports the WSJ, as each has its largest operations where the other doesn't, and Standard Pacific is an upscale homebuilder (ASP of $478K), while Ryland (NYSE:RYL) focuses on those of lower cost (ASP of $333K).
- SPF +3% premarket
- Investor presentation and conference call webcast
- Previously: Homebuilders Standard Pacific, Ryland Group agree to merge (June 14)
- ETFs: XHB, ITB
Sun, Jun. 14, 10:24 PM
- California-based homebuilders Standard Pacific (NYSE:SPF) and Ryland Group (NYSE:RYL) announce a merger agreement that would form a single company that would own or control 74K home sites and have a market cap of $5.2B.
- The two companies say they will be building houses in 20 of the top 25 metro areas in the U.S. as a single company, and rank in the top five in market share in 15 of them; they say the merger should result in cost savings of $50M-$70M per year.
- SPF CEO Scott Stowell will become executive chairman of the combined company, while RYL CEO Larry Nicholson will be its CEO.
SPF vs. ETF Alternatives
Standard Pacific Corp is engaged in the business of constructing single-family attached and detached homes with operations in the metropolitan markets in California, Florida, Arizona, Texas, the Carolinas and Colorado.
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