News Summary
New Home Co., a Dallas-based homebuilder, is set to acquire Landsea Homes in an all-cash transaction valued at $1.2 billion. The acquisition will create a top-25 privately held homebuilder operating in ten markets across the U.S. New Home Co. will purchase all outstanding shares of Landsea Homes for $11.30 per share, marking a 61% premium. The merger has been approved by Landsea’s Board of Directors and is expected to close in the third quarter of 2025, aiming to enhance growth and market position for both companies.
Dallas – New Home Co., a homebuilder based in Dallas, is set to acquire Landsea Homes, a company founded in Newport Beach, in an all-cash transaction valued at $1.2 billion. This acquisition marks a significant move in the real estate sector, as it will create a privately held top-25 homebuilder that will operate across ten markets, including Arizona, California, Colorado, Florida, Oregon, Texas, and Washington state.
Under the terms of the agreement, New Home Co. will purchase all outstanding shares of Landsea Homes for $11.30 per share, which represents a 61% premium over Landsea’s closing stock price on May 12, 2025. The acquisition is expected to close in the third quarter of 2025, pending necessary approvals.
The merger has been unanimously approved by Landsea Homes’ Board of Directors. Funding for the acquisition is being provided by Millrose Properties, with several financial institutions advising New Home Co. on the transaction.
John Ho, the CEO of Landsea Homes, characterized the deal as a means of delivering immediate cash value to shareholders while creating a strong partnership for future growth. Ho’s tenure as the leader of Landsea Homes will come to an end, having started the company as the U.S. arm of the China-based Landsea Group in 2013. Under his leadership, the company grew its revenue from $29 million in 2017 to over $1.5 billion last year.
Landsea Homes experienced a 35% increase in net new home orders last year, totaling 2,634. As of December 31, Landsea Homes owned or controlled 10,944 lots, which is expected to last three to four years in terms of supply. As a public entity listed on NASDAQ under the symbol LSEA, Landsea’s stock price was approximately $11.26 at the time of the acquisition announcement, reflecting positive investor sentiment regarding the deal’s potential success.
Ming “Martini” Tian, founder of Landsea Group, holds 17 million shares in Landsea, potentially valued at $192 million once the deal closes. John Ho received approximately $9 million in compensation during 2022 and 2023, and holds 508,661 shares, estimated to be worth $5.7 million upon the deal’s completion.
Matthew Zaist, who is the president and CEO of New Home Co., will lead the combined company following the acquisition. He emphasized that the merger aligns with New Home’s long-term growth strategy and will enhance their commitment to customer-first values.
The enterprise value of Landsea is estimated at $1.2 billion, with reported cash and equivalents amounting to $256.3 million and total debt of $727.5 million as of March 31. New Home Co. has previously announced its expansion into the Colorado market, with plans to build over 1,000 homes in Denver, potentially generating around $750 million in revenue. The company has also invested $17 million in an Austin suburb for the development of 105 homesites.
As part of its growth strategy, Landsea is also working on converting a retail property in Huntington Beach into 129 townhomes.
After the completion of the merger, Landsea Homes’ stock will be delisted from NASDAQ. The headquarters of the combined entity will remain in Irvine, California, where New Home Co. was originally founded in 2009 before relocating briefly to Scottsdale, Arizona.
Both New Home Co. and Landsea Homes have expressed confidence in the merger’s potential to bolster their market positions and expand their customer offerings, signaling promising prospects for the newly united company.
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Additional Resources
- Orange County Business Journal
- Wikipedia: Homebuilding
- Orange County Register
- Google Search: Landsea Homes
- GlobeNewswire
- Google Scholar: New Home Co
- Newport Beach Independant
- Encyclopedia Britannica: Real Estate
- Spectrum News1
- Google News: Irvine Homebuilder
