and real estate company
have agreed to acquire
Newhall Land & Farming
in a deal valued at about $990 million.
An entity in which Lennar and LNR each hold 50% interests will acquire Newhall, a community planner in Los Angeles County. Newhall Land's unitholders will receive $40.50 in cash for each of their partnership units.
The companies expect to close the transaction by the middle of 2004. The boards of all three companies have approved the merger.
Newhall's primary activities are planning the communities of Valencia and Newhall Ranch, Calif., some of the nation's most valuable landholdings. They're located on Newhall's 36,000 acres, 30 miles north of downtown Los Angeles.
Shares of Newhall closed Monday at $33.40. Lennar ended at $66.46, and LNR finished the session at $38.96.