William Lyon Homes Announces Agreement to Acquire RSI Communities, a Southern California and Texas Based Homebuilder

William Lyon Homes (the “Company” or “William Lyon Homes”) (NYSE: WLH), a leading homebuilder in the Western U.S., today announced that it has entered into a definitive agreement to acquire RSI Communities (“RSI”), a Southern California and Texas based homebuilder, and three additional related real estate assets for an aggregate cash purchase price of approximately $460 million. The transaction marks the Company’s entry into Texas and is expected to close in the first quarter of 2018, subject to the satisfaction of certain closing conditions.

RSI Communities has operated in the Inland Empire of Southern California and the Austin and San Antonio, Texas markets since being founded by Newport Beach based entrepreneur and building products veteran, Ron Simon, and 30-year homebuilding veteran, Todd Palmaer. As of December 31, 2017, RSI owned or controlled 11,128 lots, including 6,895 in Austin, Texas, 1,060 in San Antonio, Texas and 3,173 in the Inland Empire, California. RSI primarily targets the entry level and first time buyer segments.

“The addition of RSI Communities to the William Lyon Homes family enables us to strengthen our position in the land-constrained Southern California market and gain immediate size and scale in Austin as a foothold in the attractive Texas region, which we view as the first step in a broader Texas strategy,” said Matthew R. Zaist, President and Chief Executive Officer of William Lyon Homes. “We expect this acquisition to drive top-line growth and operational synergies for the Company, to generate significant cash flows over the coming years, and to be accretive on an earnings basis to our shareholders.”

Todd Palmaer, President and Chief Executive Officer of RSI, stated, “We are delighted to have our company join the William Lyon Homes organization. We have a great deal of confidence in the William Lyon Homes platform and its executive management team, and believe that its acquisition of RSI Communities will add to Lyon’s continued success in its current and new markets.” Palmaer further noted, “Our companies share many of the same core values, including a culture of character and integrity, with the overriding goal of becoming the homebuilder of choice by consistently delivering an unparalleled value and customer experience through operational excellence, and I am pleased that William Lyon Homes has embraced RSI’s employees who are expected to become an important part of the Lyon organization.”