*SCALPSWINGSTRADDLE*

[Zephyr]

$SPF $RYL Ryland Group, Inc. Announce Merger of Equals Creating America's Fourth Largest Homebuilding Company
PRNewswire Follow
June 14, 2015 8:00pm Comments
Combined Company Will Operate in 41 Markets Across 17 States with New Home Offerings Spanning Entry Level Through Luxury
IRVINE and WESTLAKE VILLAGE, Calif., June 14, 2015 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) and The Ryland Group, Inc. (NYSE: RYL) today jointly announced that their respective boards of directors have unanimously approved a definitive merger agreement pursuant to which Standard Pacific and Ryland will combine in a merger of equals to create a single company that would have an equity market capitalization of approximately $5.2 billion, an enterprise value of approximately $8.2 billion, and would own or control approximately 74,000 homesites. 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. 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. Together, we will build homes in 20 of the top 25 MSAs in the United States and will enjoy top 5 market share in 15 of these MSAs."

Ryland President and Chief Executive Officer Larry Nicholson said, "Today our industry reaches a significant milestone as two of its best operators combine forces. With similar cultures and long histories of crafting quality homes and providing superior customer service, we are each proud of where we've been and look to the future confident that we will be better together. Scott and I look forward to working together as we lead our combined companies to an even higher level of construction quality, customer satisfaction and operational excellence."



Read more: http://www.benzinga.com/pressreleases/15/06/n5592888/standard-pacific-corp-and-the-ryland-group-inc-announce-merger-of-equal#ixzz3d5T5fVPl