LANDSEA HOMES EXPANDS TEXAS PRESENCE WITH ACQUISITION OF DFW-BASED ANTARES HOMES
- Expansion of Landsea Homes' presence in the Dallas/Fort Worth metropolitan area
- Acquisition of 2,298 owned or controlled lots, increasing entry-level and high-performance home offerings
- Enhancement of Landsea Homes' transition to an asset-light business model
- Antares Homes' specialization in quality, energy-efficient home construction and creating life-long relationships with homebuyers
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Insights
The acquisition of Antares Homes by Landsea Homes represents a strategic expansion within the homebuilding industry, particularly in the Texas market. The deal allows Landsea Homes to significantly increase its market share in the Dallas/Fort Worth metropolitan area, which is known for its robust job market and economic growth. This move could potentially enhance Landsea Homes' competitive positioning by diversifying its offerings and increasing its scale, which often leads to improved operational efficiencies and cost advantages.
From a market perspective, the addition of 2,298 owned or controlled lots is a substantial increase in assets, indicating a more aggressive growth strategy. The entry-level and high-performance home offerings align with current market trends towards energy efficiency and affordability, which are key factors in consumer decision-making. The shift towards an asset-light business model could indicate a focus on reducing capital expenditures and increasing return on investment, which is a strategy that might appeal to investors seeking companies with a lean operational approach.
Landsea Homes' acquisition of Antares Homes for $232.2 million, inclusive of debt repayment, is a significant financial undertaking that will be funded through a combination of cash and borrowings. This financing structure will impact the company's leverage and liquidity. The use of a revolving credit facility suggests confidence in future cash flows, but it also increases financial risk through higher interest obligations.
Investors should monitor the post-acquisition integration process closely, as the success of the transaction will hinge on the effective assimilation of Antares Homes' operations and the realization of anticipated synergies. The unanimous approval by Landsea Homes' Board of Directors suggests a strong belief in the strategic value of the acquisition. However, investors should consider the impact on the company's balance sheet, particularly in terms of debt levels and how they compare to industry norms.
The Dallas-Fort Worth area is experiencing limited inventory and continuous urban development, making it an attractive market for homebuilders. Landsea Homes' strategic acquisition of Antares Homes, a company with a strong local presence and an emphasis on energy-efficient construction, positions Landsea to capitalize on the growing demand for sustainable housing options.
Furthermore, the emphasis on building comprehensive communities in the Chisholm Trail Parkway corridor aligns with consumer preferences for connectivity and community features. This acquisition not only increases Landsea Homes' footprint but also enhances its product portfolio with high-performance homes, which could lead to a stronger brand presence and customer loyalty in the long-term. The integration of Antares Homes' employees into Landsea's team could also bring valuable local expertise and customer relationships, which are critical factors in the success of residential developments.
- Continues Company Goal Toward Becoming One of
Texas' Top Homebuilders - Acquisition Expands Homebuilding Footprint into 13 Cities, Including Dallas/Fort Worth Metropolitan Area
- Transaction Adds 2,298 of Owned or Controlled Lots to Landsea Homes' Portfolio
- Increases Entry Level and High Performance Home Offerings
- Enhances Landsea Homes' Transition to an Asset Light Business Model
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Antares Homes is a local, family-owned homebuilder with new homes throughout the
Landsea Homes intends to purchase Antares Homes for
Commenting on the acquisition, Tommy McAden, President of Antares Homes, said, "Landsea Homes' veteran homebuilding leadership team is guided by many of the same principles that we have used to build Antares Homes. The opportunity to introduce Landsea's High Performance Homes concept to our region and become part of one of
The
Vestra Advisors LLC served as exclusive financial advisor to Landsea Homes.
For more information about Landsea Homes, visit www.landseahomes.com.
About Landsea Homes Corporation
Landsea Homes Corporation (Nasdaq: LSEA) is a publicly traded residential homebuilder based in
An award-winning homebuilder that builds suburban, single-family detached and attached homes, mid-and high-rise properties, and master-planned communities, Landsea Homes is known for creating inspired places that reflect modern living and provides homebuyers the opportunity to "Live in Your Element." Our homes allow people to live where they want to live, how they want to live – in a home created especially for them.
Driven by a pioneering commitment to sustainability, Landsea Homes' High Performance Homes are responsibly designed to take advantage of the latest innovations with home automation technology supported by Apple®. Homes include features that make life easier and provide energy savings that allow for more comfortable living at a lower cost through sustainability features that contribute to healthier living for both homeowners and the planet.
Led by a veteran team of industry professionals who boast years of worldwide experience and deep local expertise, Landsea Homes is committed to positively enhancing the lives of our homebuyers, employees, and stakeholders by creating an unparalleled lifestyle experience that is unmatched.
For more information on Landsea Homes, visit: www.landseahomes.com.
Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Landsea Homes cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "look," or similar expressions may identify forward-looking statements. Specifically, forward-looking statements may include statements relating to:
*the completion or benefits of the proposed transaction with Antares Homes (the "Acquisition");
*the future financial performance of Landsea Homes;
*changes in the market for Landsea Homes' products and services; and
*other expansion plans and opportunities.
These forward-looking statements are based on information available as of the date of the press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
These risks and uncertainties include, but are not limited to, the risk factors described by Landsea Homes in its filings with the Securities and Exchange Commission ("SEC"). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to:
*the ability to close the Acquisition on the anticipated timeline, or at all;
*the ability to recognize the anticipated benefits of the Acquisition, which may be affected by, among other things, competition, the ability to integrate the acquired business and the ability of the acquired business to grow and manage growth profitably;
*costs related to the Acquisition;
*the ability to maintain the listing of Landsea Homes' securities on Nasdaq;
*the outcome of any legal proceedings that may be instituted against the Company;
*changes in applicable laws or regulations;
*the inability to launch new Landsea Homes products or services or to profitably expand into new markets;
*the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and
*other risks and uncertainties indicated in Landsea Homes' SEC reports or documents filed or to be filed with the SEC by Landsea Homes.
Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether or not to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
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SOURCE Landsea Homes
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