CalAtlantic Group, the new homebuilding company formed in the merger between Ryland Group and Standard Pacific, traded under its new symbol CAA on Oct. 1 on the New York Stock Exchange.
Now that the $5.2 billion “merger of equals” between the Westlake-based and Irvine-based homebuilders, respectively, has gone through, the new company has become the nation’s fourth-largest residential home developer. Standard Pacific’s shareholders have the majority of shares in the combined company.
Total enterprise value including debt is around $8.4 billion and it will control about 76,000 home sites in 17 states, selling everything from entry-level to luxury homes, a company statement 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,” said CalAtlantic Group Executive Chairman Scott Stowell, who was the former Standard Pacific CEO.
Larry T. Nicholson, former CEO of Ryland, will serve as CEO of the new company.
The company is planning to establish a presence in Northern Virginia while also maintaining its presence in Irvine, according to a news release. CalAtlantic anticipates that the merger could save $50 million to $70 million in production and purchasing efficiencies, the company said.
The stock price opened on Oct. 1 at $40.46 a share and closed at $41.16.
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