Standard Pacific and Ryland Group announce merger of equals
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The pro forma combined company delivered more than 12,600 homes in the aggregate.
In the 12 months ended March 31, 2015, the pro forma combined company delivered more than 12,600 homes in the aggregate with combined pro forma revenues of $5.1 billion.
The exchange ratio was established based on the 28 day volume weighted trading price of each company's common stock for the period commencing May 5, 2015 and ending June 12, 2015. At the time of the merger, Standard Pacific will implement a 1 for 5 reverse stock split, so that each 5 shares of Standard Pacific common stock will be combined into 1 share of Standard Pacific common stock.
After giving effect to the reverse stock split, Ryland shareholders will receive 1.0191 shares of Standard Pacific common stock for each share of Ryland common stock (which would be 5.0957 shares prior to giving effect to the reverse stock split).
Fractional shares will be paid out in cash. Upon closing of the transaction, Standard Pacific stockholders will own approximately 59% and Ryland shareholders will own approximately 41% of the combined company.
Standard Pacific president and chief executive officer Scott Stowell said, "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. ■