LANDSEA HOMES CORP (LSEA)

Weekly Summary (2025-05-12)

Highlights

New Home Co. to acquire Landsea Homes Corporation for $11.30 per share, representing a 61% premium to the closing share price on May 12, 2025.
The acquisition will create a top-25 national homebuilder across 10 high-growth markets.
The combined company will generate nearly 4,000 annual closings and has a strong foundation for growth.

Challenges

Landsea Homes reported a net loss of $7.1 million in Q1 2025, compared to net income in the prior year period.
The company faces higher discounts and incentives offered to buyers, along with increased interest costs.

Catalysts

Expected closing of the acquisition in early Q3 2025.

Management Changes

Matthew Zaist will continue as President and CEO of the combined company.

Outlook

The acquisition is expected to enhance growth opportunities for both companies, positioning them strongly in the housing market.

Upcoming Events

Jul 1, 2025, 7:00:00 AM UTC

New Home Co. to acquire Landsea Homes for $11.30 per share in all-cash deal

New Home Co. has agreed to acquire Landsea Homes Corporation for $11.30 per share in cash, representing a 61% premium to Landsea's closing price on May 12, 2025. The transaction, valued at approximately $1.2 billion, is expected to close early in Q3 2025, subject to customary conditions including a successful tender offer. Upon completion, Landsea will become a privately held company, and the combined entity will rank among the top 25 US homebuilders by volume, operating across 10 high-growth markets. Apollo Funds are providing $650 million in new equity to support the deal.

merger close