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Landsea (LSEA) on Expansion Spree, To Acquire Antares Homes
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Landsea Homes Corporation (LSEA - Free Report) has entered a definitive agreement to acquire a Dallas-Fort Worth based homebuilder, Antares Homes.
The company shares optimistic views on this anticipated acquisition, as it believes that the market reach of Antares Homes will provide it with the perfect opportunity to achieve more size and scale in Texas.
Shares of this publicly traded residential homebuilder declined 1.8% during the trading hours but increased 2.1% in the after-hours trading session on Jan 9.
The Acquisition in Details
Post closing, this strategic transaction is expected to expand the footprint of Landsea in the Dallas/Fort Worth metropolitan area and an additional 13 cities. This buyout is expected to add 2,298 owned or controlled lots to Landsea's portfolio.
The acquisition value is considered to be $232.2 million in cash, which includes the repayment of Antares Homes’ debt with an anticipated value of $47.2 million. Landsea expects to use a mix of cash and borrowings under its revolving credit facility for the transaction under the financial supervision of Vestra Advisors LLC. This strategic buyout is expected to close in early February of 2024, subject to customary closing conditions’ satisfaction.
Acquisition Initiatives Bode Well
Landsea intently focuses on expanding its market reach and footprint through accretive buyouts. Its main aim is to focus on more affordable segments of the market with a differentiated high-performance home series, accompanied by a land light strategy for a quick return on inventory. The company consistently searches for acquisition targets that fit best with this model, thus increasing its growth prospects.
Recently, on Oct 19, 2023, Landsea announced its expansion into the Colorado housing market by acquiring the assets and lot inventory of Richfield Homes. With this acquisition, Landsea entered its seventh homebuilding market, thus showcasing a notable presence in one of the best housing markets in the country.
During the third-quarter 2023 earnings call, LSEA stated that given the rise in interest rates, it would primarily consider acquisitions to fuel growth opportunities.
Image Source: Zacks Investment Research
Thanks to these tailwinds, shares of Landsea have gained 51.1% in the past three months, outperforming the Zacks Real Estate - Development industry’s 9.4% growth.
Zacks Rank & Key Picks
Landsea currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Finance sector.
It has a trailing four-quarter earnings surprise of 6.2%, on average. The stock has gained 11.5% in the past year. The Zacks Consensus Estimate for EQIX’s 2024 sales and earnings per share (EPS) suggests rises of 8.3% and 7.7%, respectively, from the year-ago period’s reported levels.
Everest Group, Ltd. (EG - Free Report) currently flaunts a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 24.5%, on average. The stock has gained 4.4% in the past year.
The Zacks Consensus Estimate for EG’s 2024 sales and EPS suggests growth of 14.9% and 12.6%, respectively, from the year-ago period’s levels.
Chubb Limited (CB - Free Report) sports a Zacks Rank of 1 at present. It has a trailing four-quarter earnings surprise of 6.5%, on average. The stock has inched up 0.1% in the past year.
The Zacks Consensus Estimate for CB’s 2024 sales and EPS suggests growth of 7.8% and 7.3%, respectively, from the year-ago period’s levels.
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Landsea (LSEA) on Expansion Spree, To Acquire Antares Homes
Landsea Homes Corporation (LSEA - Free Report) has entered a definitive agreement to acquire a Dallas-Fort Worth based homebuilder, Antares Homes.
The company shares optimistic views on this anticipated acquisition, as it believes that the market reach of Antares Homes will provide it with the perfect opportunity to achieve more size and scale in Texas.
Shares of this publicly traded residential homebuilder declined 1.8% during the trading hours but increased 2.1% in the after-hours trading session on Jan 9.
The Acquisition in Details
Post closing, this strategic transaction is expected to expand the footprint of Landsea in the Dallas/Fort Worth metropolitan area and an additional 13 cities. This buyout is expected to add 2,298 owned or controlled lots to Landsea's portfolio.
The acquisition value is considered to be $232.2 million in cash, which includes the repayment of Antares Homes’ debt with an anticipated value of $47.2 million. Landsea expects to use a mix of cash and borrowings under its revolving credit facility for the transaction under the financial supervision of Vestra Advisors LLC. This strategic buyout is expected to close in early February of 2024, subject to customary closing conditions’ satisfaction.
Acquisition Initiatives Bode Well
Landsea intently focuses on expanding its market reach and footprint through accretive buyouts. Its main aim is to focus on more affordable segments of the market with a differentiated high-performance home series, accompanied by a land light strategy for a quick return on inventory. The company consistently searches for acquisition targets that fit best with this model, thus increasing its growth prospects.
Recently, on Oct 19, 2023, Landsea announced its expansion into the Colorado housing market by acquiring the assets and lot inventory of Richfield Homes. With this acquisition, Landsea entered its seventh homebuilding market, thus showcasing a notable presence in one of the best housing markets in the country.
During the third-quarter 2023 earnings call, LSEA stated that given the rise in interest rates, it would primarily consider acquisitions to fuel growth opportunities.
Image Source: Zacks Investment Research
Thanks to these tailwinds, shares of Landsea have gained 51.1% in the past three months, outperforming the Zacks Real Estate - Development industry’s 9.4% growth.
Zacks Rank & Key Picks
Landsea currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Finance sector.
Equinix, Inc. (EQIX - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
It has a trailing four-quarter earnings surprise of 6.2%, on average. The stock has gained 11.5% in the past year. The Zacks Consensus Estimate for EQIX’s 2024 sales and earnings per share (EPS) suggests rises of 8.3% and 7.7%, respectively, from the year-ago period’s reported levels.
Everest Group, Ltd. (EG - Free Report) currently flaunts a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 24.5%, on average. The stock has gained 4.4% in the past year.
The Zacks Consensus Estimate for EG’s 2024 sales and EPS suggests growth of 14.9% and 12.6%, respectively, from the year-ago period’s levels.
Chubb Limited (CB - Free Report) sports a Zacks Rank of 1 at present. It has a trailing four-quarter earnings surprise of 6.5%, on average. The stock has inched up 0.1% in the past year.
The Zacks Consensus Estimate for CB’s 2024 sales and EPS suggests growth of 7.8% and 7.3%, respectively, from the year-ago period’s levels.