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The New Home Company (NWHM) Is Acquired By Apollo Global Management; Stock Skyrockets 83% In Early Trading

Friday, July 23, 2021 12:02 PM | Kyle Depontes
The New Home Company (NWHM) Is Acquired By Apollo Global Management; Stock Skyrockets 83% In Early Trading

What is going on with NWHM?

The New Home Company (NWHM) stock surged today after the company announced it had been acquired by affiliates of Apollo Global Management, Inc. (APO) in an all-cash transaction valued at $173 million in equity value.

Under the terms of the agreement, The Apollo Funds will commence a tender offer to acquire all outstanding shares of NWHM for $9.00 per share, an 85% premium to the closing stock price on July 22, 2021 of $4.86 per share. As of Friday at 11:49am, shares of NWHM had risen 83% to $8.90.

Founded in 2009, the New Home Company is a next-generation homebuilder focused on the design, construction, and sale of homes in key markets across California, Arizona and Colorado.

What does this mean for The New Home Company?

Upon the completion of the transaction, NWHM will become a privately held company and shares of NWHM common stock will no longer be listed on any public market. However, Apollo’s ability to provide flexible capital and their  knowledge of the homebuilding industry will only allow NWHM to further accelerate the growth of their business.

“Over the last several years, we have transformed the company into a growing and diversified builder with operations in three states,” said H. Lawrence Webb, Executive Chairman of The New Home Company Board of Directors. “We have strengthened our balance sheet, streamlined our cost structure and repositioned our product offerings to cater to a deeper pool of buyers. Apollo’s ability to provide flexible capital and deep knowledge of the homebuilding industry will help us to accelerate the growth of our business."

The transaction will be financed with equity provided by the Apollo Funds and, if required, a committed debt financing package. It is expected to close in the second half of the fiscal year.

Short-Term Technical Rank - 47

NWHM has a Short-Term Technical Rank of 47. Find out what this means to you and get the rest of the rankings on NWHM!

The New Home Co Inc is a home builder that focuses on the design, construction, and sale of homes. The company operates in two segments, Homebuilding and Fee Building. It builds and sells homes in metropolitan areas of California and Arizona, including coastal Southern California, the San Francisco Bay area, metro Sacramento, and the greater Phoenix area. The company also offers general contracting services to build homes for independent third-party property owners.

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