Sekisui House, a Japanese homebuilder, would pay $4.95 billion to acquire M.D.C. Holdings, its US counterpart.

Creator: Deen Hameed 

Sekisui House, Ltd. (SKHSY), a Japanese house maker, and M.D.C. Holdings, Inc. (NYSE:MDC), a homebuilder in the United States, said today that they have reached an agreement for the former to purchase the latter in an all-cash deal.

According to the press release, the deal, which is estimated to be worth US$4.9 billion, will increase Sekisui House's market share in the US housing industry.

The cash payout to MDC stockholders is US$63.00 per share, which represents a 19% premium over the company's closing stock price on January 17, 2024, as well as a 41% premium over the company's volume-weighted average trading price over the previous 90 days.

On the news, MDC's shares increased 16.9%.

"This exciting acquisition of MDC represents a significant advancement of the Sekisui House strategy to expand our U.S. presence and bring the value of our technology, innovation, and philosophies to U.S. homebuilding and ultimately to our customers," said Yoshihiro Nakai, President, CEO, and Representative Director of the Board at Sekisui House.

"It will also enable us to surpass our initial projections and meet our target of supplying 10,000 homes outside of Japan by FY2025."

The transaction is anticipated to be completed in the first half of 2024, subject to a number of considerations, such as regulatory clearances, approval from MDC's investors, and other usual requirements.

In addition to certain affiliates who hold about 21.2% of MDC's shares, Larry Mizel and David Mandarich have promised to vote in support of the deal.

According to a statement from Sekisui, it would pay $63 per share for M.D.C., which represents a 19% premium over the closing price on Wednesday.

Regarding Us

M.D.C. Holdings, Inc., one of the top home builders in the US, was established in 1972. Throughout the nation, we have assisted over 230,000 purchasers in relocating into brand-new, high-quality homes through our Richmond American Homes subsidiaries.

1. Industry                                                     Construction
2. Company size                                            1,001-5,000 employees
3. Headquarters                                             Denver, Colorado
4. Type                                                             Public Company
5. Founded                                                      1972
6. Specialties                                                homebuilding, real estate, mortgage, and insurance

Locations

Primary
4350 S Monaco St
Denver, Colorado 80237, US