Taylor Morrison Buys William Lyon
Taylor Morrison buys William Lyon.
Taylor Morrison buys William Lyon Homes for $2.4 billion.
The deal expands its footprint into Washington, Oregon, and Nevada and deepens market share in Colorado, Arizona, Texas, and California. It creates the nation's fifth-largest homebuilder with a top 5 position in 16 of the combined 23 markets. William Lyon will give Taylor Morrison a greater geographic scale and a larger footprint in the entry-level market. Taylor Morrison stockholders will own 77 percent of the joint company. William Lyon Homes stockholders will own the remaining 23 percent.
Sheryl Palmer of Taylor Morrison said: ‘The agreement to acquire William Lyon Homes marks a historic day for Taylor Morrison as we continue to grow our business in smart and meaningful ways. The combined business provides the unique opportunity to gain increased local scale and expertise within six of our major markets, while expanding Taylor Morrison into Washington, Oregon, and Nevada. We've long aspired to be in the Pacific Northwest and have looked for the right point of entry at the right time and at the right price—and that's what this is. This will be our sixth builder acquisition in seven years and a demonstration of the proven discipline and ability in M&A that we have developed over the years.
Our bread and butter have been entry, first-time, move-up, and active adult. William Lyon’s business has been about 54 percent entry-level buyers. Combine those two and it puts us in an attractive, mid-to-high 30 percent range in entry-level. Add move-up, and it becomes more than three-quarters of our business.’
Matthew Zaist of William Lyon said: ‘William Lyon Homes' legacy spans more than six decades of outstanding construction and customer care, and our team of professionals has set a high standard for the home building industry. The combined business will represent a powerhouse of a builder that can meet the strong demand of entry-level and first-time move-up buyers—consumer segments that represent 85 percent of William Lyon's closings last year. We are excited to join forces with Taylor Morrison and draw upon their proven track record and greater access to scale efficiencies to meet consumer demand with a reputable, quality product.’
William Lyon said: ‘William Lyon Homes is a family business rooted in strong values and tradition, which makes us delighted to join a company with one of the most recognized and highly regarded cultures in homebuilding. The decision to partner with Taylor Morrison was based on shared strategic alignment, like-minded core values, and a long history of integrity. We are confident in the success Taylor Morrison demonstrates through its reputation of leadership, quality construction, and unparalleled customer experience and we know our teams, our customers and our stockholders will be in good hands.’
Citigroup served as financial advisor to Taylor Morrison. Paul, Weiss, Rifkind, Wharton & Garrison served as legal advisor.
JP Morgan served as financial advisor to William Lyon Homes. Latham and Watkins served as legal advisor.
Taylor Morrison buys William Lyon Homes for $2.4 billion.
The deal expands its footprint into Washington, Oregon, and Nevada and deepens market share in Colorado, Arizona, Texas, and California. It creates the nation's fifth-largest homebuilder with a top 5 position in 16 of the combined 23 markets. William Lyon will give Taylor Morrison a greater geographic scale and a larger footprint in the entry-level market. Taylor Morrison stockholders will own 77 percent of the joint company. William Lyon Homes stockholders will own the remaining 23 percent.
Sheryl Palmer of Taylor Morrison said: ‘The agreement to acquire William Lyon Homes marks a historic day for Taylor Morrison as we continue to grow our business in smart and meaningful ways. The combined business provides the unique opportunity to gain increased local scale and expertise within six of our major markets, while expanding Taylor Morrison into Washington, Oregon, and Nevada. We've long aspired to be in the Pacific Northwest and have looked for the right point of entry at the right time and at the right price—and that's what this is. This will be our sixth builder acquisition in seven years and a demonstration of the proven discipline and ability in M&A that we have developed over the years.
Our bread and butter have been entry, first-time, move-up, and active adult. William Lyon’s business has been about 54 percent entry-level buyers. Combine those two and it puts us in an attractive, mid-to-high 30 percent range in entry-level. Add move-up, and it becomes more than three-quarters of our business.’
Matthew Zaist of William Lyon said: ‘William Lyon Homes' legacy spans more than six decades of outstanding construction and customer care, and our team of professionals has set a high standard for the home building industry. The combined business will represent a powerhouse of a builder that can meet the strong demand of entry-level and first-time move-up buyers—consumer segments that represent 85 percent of William Lyon's closings last year. We are excited to join forces with Taylor Morrison and draw upon their proven track record and greater access to scale efficiencies to meet consumer demand with a reputable, quality product.’
William Lyon said: ‘William Lyon Homes is a family business rooted in strong values and tradition, which makes us delighted to join a company with one of the most recognized and highly regarded cultures in homebuilding. The decision to partner with Taylor Morrison was based on shared strategic alignment, like-minded core values, and a long history of integrity. We are confident in the success Taylor Morrison demonstrates through its reputation of leadership, quality construction, and unparalleled customer experience and we know our teams, our customers and our stockholders will be in good hands.’
Citigroup served as financial advisor to Taylor Morrison. Paul, Weiss, Rifkind, Wharton & Garrison served as legal advisor.
JP Morgan served as financial advisor to William Lyon Homes. Latham and Watkins served as legal advisor.
Comments
Post a Comment