US: Standard Pacific, Ryland Group to merge in $5.2 billion deal

Two major homebuilders, Standard Pacific and The Ryland Group, announced a merger agreement Sunday in a deal that would form a single company with what they say would be an equity market capitalization of $5.2 billion.

Standard Pacific and Ryland, both based in Southern California, said they would own or control 74,000 home sites. They built 12,600 homes worth $5.1 million in the 12 months ending on March 31 alone.

By merging, the two companies think they will see cost savings of $50 million to $70 million a year. They haven’t picked a new name yet.

“Combining two industry leaders with nearly 100 years of homebuilding experience between them puts us in a strong position to benefit from the continued housing market recovery,” Standard Pacific CEO Scott Stowell said in a statement. “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.”

Full content: CNBC

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