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Newport Beach-based Landsea Homes to go public in $510-million merger with LF Capital Acquisition Corp.

A home built by Landsea Homes in its IronRidge community in Lake Forest.
A home built by Landsea Homes in its IronRidge community in Lake Forest. The company announced Monday it would become a public company, following a definitive merger agreement valued at $510 million.
(Courtesy of Landsea Homes Corp.)

A residential homebuilder company announced Monday that it would become a public company, following a transaction valued at $510 million that will merge LF Capital Acquisition Corp. and Newport Beach-based Landsea Homes.

The merged companies will be named Landsea Homes Corp. and it will trade on Nasdaq under the ticker symbol LSEA. The company’s warrants and units will be listed as LSEAW and LSEAU.

Landsea Homes was founded in 2013 by Landsea Green Properties Co., Ltd., a publicly traded company listed on the Hong Kong Stock Exchange to build homes for the U.S. domestic market. Landsea Green Properties Co. is expected to own about 67.4% of Landsea Homes at the closing of the merger. Landsea Homes develops predominantly in California and Arizona.

LF Capital Acquisition was formed in 2018 with the purpose of acquiring one or more businesses and assets through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combinations.

“Landsea Homes has established a unique and differentiated homebuilding platform with significant growth prospects for the future,” Scott Reed, CEO and president of LF Capital, said in a statement. “With a strong foothold in two high-growth real estate markets, California and Arizona, and an industry-leading program that provides a superior living environment through home automation, sustainability and energy savings, we believe this transaction will allow Landsea to reach its true growth potential.

“We look forward to working with the Landsea team as we introduce their compelling story to the public markets.”

Both board of directors have approved the proposed transaction, which is expected to close in the fourth quarter of the year but is subject to regulatory and stockholder approvals.

In a press release, Landsea stated it had net orders of 1,302 homes, 932 deliveries, 856 homes in backlog and generated $641 million in total revenue in the 12 months preceding June 2020.

“Landsea is revolutionizing the homebuilder industry by committing to home automation, sustainability and energy savings,” said John Ho, CEO of Landsea Homes, in a statement. “Our inspired homes are built in vibrant, prime locations where the consumer can connect seamlessly with their surroundings and enhance their local lifestyle, supporting our defining customer principle — ‘Live in Your Element.'"

“Merging with LF Capital and becoming a public company is the right next step in our growth phase and an important milestone for our company,” Ho added. “This transaction will enhance our ability to grow our market share, diversify across product offerings, strengthen our brand position and maintain an appropriate supply of land for future buildout. LF Capital shares our vision for growth and we are thrilled about our partnership.”

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