New Home Co. acquires Landsea, forming a top 25 homebuilder

New Home Co. has completed a previously announced acquisition of Landsea Homes, the companies announced Wednesday. The deal creates a top-25 national homebuilder based on the number of new homes sold in 2024.

Matthew Zaist, who currently serves as president and CEO of New Home, will led the combined company. New Home was the nation’s 62nd-largest builder last year, while Landsea was 33rd, according to rankings from Builder Magazine.

“We are pleased to complete this transaction, which marks an important next step in New Home’s long-term growth strategy,” Zaist said in a statement. “With greater scale, market diversity and a shared focus on delivering exceptional customer experiences, we are well positioned to further extend our platform and enhance our offerings to homebuyers.”

Following the closure of the deal, Landsea Homes’ common stock was delisted from the NASDAQ index. Landsea shareholders will receive $11.30 per share in cash.

The acquisition was funded with proceeds from three sources. These included funds managed by affiliates of Apollo Global Management, land banking capital from Millrose Properties (which acquired $522 of home sites under option with New Home), and an offering of senior notes by New Home.

J.P. Morgan Securities, RBC Capital Markets, Vestra Advisors and Wells Fargo served as financial advisers to New Home. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to New Home.

Moelis & Co. LLC was the as exclusive financial adviser to Landsea Homes, while Latham & Watkins LLP served as legal counsel.

New Home, based in Irvine, California, describes itself as an “asset-light” homebuilder. It targets entry-level and move-up buyers across “high-growth” markets in the West, Central and Pacific Northwest regions.

Landsea is based in Dallas. It builds high-end homes and sustainable master-planned communities acrosss the U.S., with a focus on major markets like New York City, Boston and Los Angeles.