Acquisitions · Homebuilding
Sekisui House agrees to buy Denver homebuilder M.D.C. Holdings for $4.9 billion
- Buyer
- Sekisui House (Osaka)
- Target
- M.D.C. Holdings (Richmond American Homes), Denver, Colorado
- Value
- $4.9B
- Status
- Completed in April 2024.
- Date
- 2024-01-18
Sekisui House agreed to acquire NYSE-listed M.D.C. Holdings, parent of Richmond American Homes, for $63 per share in cash, an equity value of about $4.9 billion and a 19% premium to the prior close. MDC builds homes across 16 states. The combination was set to make Sekisui House the fifth-largest US homebuilder by closings.
Why it matters
The deal reflects how Japanese housing groups are turning to the US to offset a shrinking home market at home. It also brought Sekisui House's overseas target of 10,000 homes a year within reach ahead of schedule.
The deal
Sekisui House agreed on January 18, 2024 to pay $63 a share in cash for M.D.C. Holdings, about 19% above the previous close, for an equity value of about $4.9 billion. There was no financing condition. Moelis and Mitsubishi UFJ Morgan Stanley advised Sekisui House, and Paul, Weiss advised MDC. The deal closed on April 19, 2024, and MDC left the New York Stock Exchange.
What MDC brings
MDC builds homes under the Richmond American Homes name and has built more than 240,000 since 1977. It closed 9,710 homes in 2022, eleventh among US builders. Combined with Sekisui House's existing builders Woodside, Holt, Chesmar and Hubble, the group would have had about 15,067 closings across 16 states in 2022, making it the fifth-largest US homebuilder.
It is one of several large US homebuilder purchases by Japanese groups, along with those by Sumitomo Forestry and Daiwa House.
Sources
Kakehashi M&A News home
