Japanese house manufacturer Sekisui House has announced the acquisition of MDC Holdings, a U.S. homebuilder, in an all-cash transaction valued at $4.9 billion.
Under the agreement, MDC shareholders will receive $63.00 per share in cash, reflecting a 19% premium to MDC’s closing stock price on January 17, 2024.
The acquisition positions Sekisui House as the fifth-largest housebuilder in the U.S., supporting its goal of supplying 10,000 homes outside of Japan by FY2025.
MDC is a listed homebuilder headquartered in Denver, Colorado, with footprint in 34 metro areas in 16 states. MDC ranked eleventh (9,710 house closings) in the U.S. on the basis of house closings in FY2022.
”In its more than 50 years history, MDC has delivered more than 240,000 quality houses strengths including diverse lineup of products to accommodate diversifying customer demand and capability to offer quality designed homes and possesses a corporate culture that strongly accords with the Group’s corporate stance and business strategies,” said Sekisui House in a statement.
Yoshihiro Nakai, Representative Director of the Board President, Executive Officer and CEO of Sekisui House, stated, “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. It will also allow us to achieve our goal of supplying 10,000 homes outside of Japan by FY2025, ahead of our initial expectations. This transaction directly aligns with our stated strategy for growth in North America and will create a more resilient portfolio for Sekisui House.”
Larry Mizel, Founder & Executive Chairman of MDC, stated, “Over the past half-century, our unwavering commitment to excellence has been the cornerstone of our success, benefiting customers, employees, business partners and shareholders. In our remarkable journey, marked by the construction of over 240,000 homes, we’ve emerged as a top 10 homebuilder in the United States. Our ability to navigate through varying housing market cycles while maintaining business resilience speaks to our strategic prowess, and has led not only to the creation of significant shareholder value, but also to an industry-leading dividend yield for our shareholders. Our strategic decision to merge with Sekisui House is a testament to our focus on maximizing shareholder value and delivering significant cash proceeds for our shareholders. Sekisui House’s technology and processes are well-regarded, and we look forward to partnering with a company that shares our belief in delivering customers with high-quality homes and a streamlined, comprehensive homebuying experience.”
