Landsea Homes Stock Soars On Apollo's New Home Buyout At 61% Premium

Landsea Homes LSEA shares are trading higher on Tuesday. On Monday, the company inked a definitive deal to be acquired by Apollo Global Management, Inc.‘s APO managed portfolio company of funds, New Home, for an enterprise value of around $1.2 billion.

As per the deal, New Home will acquire Landsea Homes for $11.30 per share in an all-cash transaction.

This purchase price represents a premium of around 61% to Landsea Homes’ closing share price on May 12, 2025, the last trading day before the announcement.

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Upon completion of the transaction, Landsea Homes will become a privately held company, and its common stock will no longer be listed on Nasdaq.

This transaction is supported by Apollo Funds, the majority shareholder of New Home since 2021, who are committing $650 million of new cash equity to facilitate this credit-enhancing transaction and position the business for future growth.

The transaction has been unanimously approved by the Landsea Homes Board of Directors and is expected to close early in the third quarter of 2025, subject to customary closing conditions.

Following the successful completion of the tender offer, New Home will acquire all remaining shares not tendered through a second-step merger at the same price.

The combined entity is expected to provide homebuyers with a wide array of housing choices, including single-family detached and attached homes, across rapidly expanding markets in Arizona, California, Colorado, Florida, Oregon, Texas, and Washington.

This combination will establish an asset-light, returns-focused homebuilder with nearly 4,000 annual closings.

John Ho, Chief Executive Officer of Landsea Homes said, “We believe this transaction with New Home will deliver immediate cash value to our stockholders at a significant premium and provide us with a strong, well-capitalized partner to accelerate our next phase of growth.”

In a separate release, Landsea reported first-quarter 2025 adjusted loss per share of 5 cents, exceeding the consensus estimate of 9 cents loss, while sales of $310.8 million missed the Street view of $312 million.

Price Action: LSEA shares are up 60.2% at $11.24 at the last check on Tuesday.

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