On January 18th, Sekisui House announced its decision to acquire all shares of MDC Holdings, (based in Colorado, USA; CEO: David Mandarich), a publicly listed builder in the United States, through Sekisui House’s subsidiary SH Residential Holdings.
Key Takeaways:
Sekisui House acquires MDC Holdings, a U.S. builder, surpassing its goal with a significant expansion to 15,000 homes.
The $4.95 billion deal is Sekisui House's highest overseas M&A cost; completion depends on MDC's shareholder resolution.
MDC Holdings, listed on the NYSE, supplied 9,710 homes in FY22, ranking 11th nationally in the U.S.
Leveraging its expertise in home construction and offering high value through lifestyle proposals developed in Japan, Sekisui House has been actively expanding its overseas presence.
Beginning with the acquisition of Woodside Homes Company in 2017, Sekisui made substantial inroads into the U.S. market.
With a goal of supplying 10,000 homes by 2025, Sekisui House continued acquisitions, reaching a supply of 5,357 homes in 2022.
Example MDC home
MDC operates as a builder in 16 states and 34 cities, listed on the New York Stock Exchange. In 2022, the company supplied 9,710 homes, ranking 11th nationwide.
With the recent acquisition of MDC, Sekisui House significantly surpasses its original target of 10,000 homes, expanding to approximately 15,000 homes and achieving a position among the top five builders in the United States.
Post-acquisition, the company plans to broaden its sales structure with a focus on two main pillars: two-by-four homes and wood-based Sherwood homes.
The acquisition cost for the shares is $4.954 billion USD (approximately ¥720 billion JPY), marking the highest amount in Sekisui House’s overseas M&A history.
The completion of the acquisition is contingent on the shareholder resolution at MDC's general meeting scheduled for the first half of 2024.
Yoshihiko Nakai, Sekisui House CEO
During a press conference on the 18th, Mr. Yoshihiko Nakai, Representative Director, President, and CEO of Sekisui House, stated, "MDC is a builder with a history of around 50 years, similar to ours, and has a very robust and stable management structure. Having achieved our goal of an annual supply of 10,000 homes in the United States, our M&A strategy in the U.S. is temporarily complete. Going forward, we aim to further strengthen our organization and enhance our sales."
Source:
R.E. Port News (Japanese only)
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