Charlotte Homebuilders Standard Pacific and Ryland are Merging
Standard Pacific and Ryland Group have agreed to a merger that will create a single homebuilder with operations in 17 states including the Carolinas and the Charlotte area.
The merger marks the first big move toward consolidation among the major publicly traded homebuilders in years and comes as the U.S. housing market continues to gradually regain its footing after years in a deep slump.
Ryland was the fifth-ranked U.S. homebuilder last year, based on home closings, while Standard Pacific was 11th. Combined, the builders accounted for 12,633 home closings last year, which would make the combined company the fourth-biggest builder. The top three are D.R. Horton, Lennar Corp. and PulteGroup.
The merger will create a company that can sell homes potentially to a broader array of buyers. The new company would also own or control roughly 74,000 land parcels for homes.
Standard Pacific sells homes in California, Arizona, Colorado, Texas, Florida and the Carolinas and caters primarily to move-up buyers, or homeowners looking to sell their home and buy a new one. Ryland Group sells homes in 17 states including the Carolinas and builds homes aimed to everyone from first-time homebuyers to high-end homes.