O.C.’s Standard Pacific Buys Bay Area Competitor
Home builder Standard Pacific Corp. said Friday that it has acquired a Northern California competitor in a $79-million deal that gives it a stronger presence in the booming Silicon Valley housing market.
Standard Pacific, a Costa Mesa-based builder of mainly trade-up housing in California and Texas, paid $16 million for Duc Development Co., paid $55 million to buy out the interests of various Duc partners and assumed $8 million in debt.
The deal adds more than 1,400 single-family lots and 12 new projects to Standard Pacific’s San Francisco Bay Area holdings, mainly in San Jose, San Leandro, Hayward and Union City.
It now is developing 3,000 single-family homes in Northern California and a total of about 7,500 counting its projects in Southern California and Texas.
Andrew H. Parnes, Standard Pacific’s vice president for finance, said his company and privately held Duc have bought parcels of land from each other for 25 years. Duc is thriving, Parnes said.
“Those are real strong markets up there that are feeding off the Silicon Valley growth,” Parnes said. “It’s a good market up north and a chance to take advantage of it.”
The acquisition also puts Standard Pacific in two new markets, Salinas and Hollister. Standard Pacific, which earned $8.4 million last year on $400 million in revenue, also operates in Orange, Ventura, Riverside, San Bernardino and San Diego counties and in Dallas, Houston and Austin, Texas.
