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Ron Simon

Ron Simon

William Lyon Homes said on Tuesday that it has agreed to buy fellow Newport Beach-based homebuilder RSI Communities, for $460 million.

RSI Communities, which builds precision-manufactured houses that can be assembled faster and more efficiently than by traditional methods, owns or controls more than 11,000 home lots, primarily in Texas and the Inland Empire.

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RSI’s Texas operations will become a new region for William Lyon Homes, whose operations have largely been based along the West Coast. The builder counts a market value of about $825 million.

“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 William Lyon chief executive Matthew Zaist, in a statement.

The all-cash deal should close by the end of March. William Lyon Homes said it intends to fund the acquisition with cash on hand, debt, and about $200 million in land banking proceeds.

The sale of RSI Communities comes nearly three months after an affiliated company, Anaheim-based manufacturer RSI Home Products Inc., said it would be sold for $1.075 billion to American Woodmark Corp.

Both RSI firms were founded by Ron Simon, one of Orange County’s wealthiest businessmen with a fortune estimated at a little more than $1 billion. He won a Horatio Alger Award in 2005.