Sekisui House to Expand U.S. Homebuilding Footprint with $4.9 Billion M.D.C. Holdings Merger
January 18 2024 - 5:59AM
Dow Jones News
By Adriano Marchese
M.D.C. Holdings and Japanese house manufacturer Sekisui House
are set to merge into one of the largest homebuilders in the U.S.
in an all-cash transaction with an equity value of $4.9 billion,
the two companies said in a joint statement Thursday.
Under the terms of the agreement, shareholders of M.D.C., a
U.S.-based homebuilder, will be acquired by a wholly owned
subsidiary of Sekisui House, receiving $63.00 a share in cash.
M.D.C.'s stock has been on an upward trend over the last 12
months, rising nearly 48% to $53.09 a share.
The offer represents a 19% premium to M.D.C.'s closing stock
price on Wednesday, and a premium of about 41% its 90-day
volume-weighted average trading price.
The new combined company expects to leverage Sekisui House
technologies and building practices to support delivery of
higher-quality M.D.C. houses that strengthen its position in the
key states in which it operates.
After the merger is completed, Sekisui House will become the
fifth-largest homebuilder in the U.S. based on the number of houses
closed in 2022 as it looks to reach its goal of supplying 10,000
houses outside of Japan by 2025 sooner than expected.
The acquisition is expected to close in the first half of this
year.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
January 18, 2024 06:44 ET (11:44 GMT)
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