Arizona-based Taylor Morrison, the nation’s seventh-largest homebuilder by revenue, said Tuesday it will buy William Lyon Homes, a California-based builder with a large footprint in the Pacific Northwest, as well as in Colorado and Texas.
The deal values William Lyon Homes at $2.4 billion, including the assumption of debt. This yields a purchase price multiple of 1.0 times book, according to Taylor Morrison.
Taylor Morrison will acquire all of the outstanding shares of William Lyon Homes common stock for per share consideration of $2.50 in cash and 0.80 shares of Taylor Morrison common stock.
The transaction will consist of approximately 90% Taylor Morrison stock and 10% cash. Based on…