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Standard Pacific to Purchase Westfield

June 06, 2002|From Bloomberg News

Standard Pacific Corp., an Irvine-based home builder with operations in the Western and Southwestern U.S., plans to buy closely held Westfield Homes USA Inc. to expand in the Southeast.

Standard Pacific has a letter of intent to pay about $59 million in cash and stock and assume about $50 million in debt to buy Westfield's Florida, North Carolina and South Carolina operations, said Andrew Parnes, Standard Pacific's chief financial officer. The purchase won't include Westfield's Illinois business.

Standard Pacific has been expanding this year into Florida, where the population will grow to 21 million from 16 million by 2025, making it the third-most populous state, according to the U.S. Census Bureau.

The company's purchases include the Florida unit of Newmark Homes Corp. for about $95 million and closely held Colony Homes of Orlando for about $29 million.

"Florida is a high-growth market," said Gopal Ahluwalia, director of research for the National Assn. of Home Builders in Washington. "It draws a lot of people who buy second homes with the intention of moving there full time when they retire."

Standard Pacific plans to buy additional U.S. building businesses, Parnes said. The company also builds in California, Arizona, Texas and Colorado, he said.

Standard Pacific shares rose $1.76, or 5.8%, to $32.07 on the New York Stock Exchange.

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