Taylor Morrison to acquire William Lyon Homes for $2.4 billion

Taylor Morrison, Inc. has agreed to acquire California-based William Lyon Homes in a billion-dollar deal that would create the nation’s fifth largest homebuilder.

Under the deal, Taylor will acquire all of the outstanding shares of William Lyon common stock for per share consideration of $2.50 in cash and 0.800 shares of Taylor common stock.

Taylor’s stockholders will own approximately 77 percent while the stockholders of William Lyon will own approximately 23 percent of the combined company.

The combination will create the nation’s fifth largest homebuilder based on the last 12 months of closings, and firmly places Taylor in a top fifth position in 16 of the combined 23 markets with an estimated 14,200 closings for the pro forma combined company, according to a joint statement of the companies.

The deal is expected to close late in the first quarter or early in the second quarter of 2020, subject to certain conditions.