Real Estate Company Acquisition may Launch Maga-Brand

Steve’s breakdown: Invitation Homes & Starwood Waypoint Homes will trade together as one stock after the ink dries. What’s to happen to the brands? Fred Tuomi, the new CEO of the combined company, probably has some clues. Start with this number: 855.224.5484

DALLAS, TX & SCOTTSDALE, AZ: Invitation Homes Inc said it would buy smaller rival Starwood Waypoint Homes in an all-stock deal that would create the biggest single-family rental company in the United States.

Under the deal, each Starwood Waypoint Homes share will be converted into 1.614 Invitation Homes shares based on a fixed exchange ratio, Blackstone Group LP-owned Invitation Homes said on Thursday.

After the deal closes, Invitation Homes stockholders will own about 59 percent of the combined company’s stock, with Starwood Waypoint stockholders owning the rest. The deal would also reduce Blackstone’s stake in the combined company to 41 percent, compared with a 70 percent stake in Invitation Homes.

The combined company, whose shares will continue to trade on the New York Stock Exchange, would own and manage a portfolio of about 82,000 single-family homes in the United states. Both the companies have overlapping markets and majority of the combined company’s revenue would come from high-growth markets such as the western United States and Florida, the companies said in a statement.

After the deal, Starwood Waypoint’s Chief executive Fred Tuomi will head the combined company.

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