Sumitomo Forestry agreed to buy NYSE-listed Tri Pointe Homes for $47 a share in cash, valuing the California-based builder at about $4.1 billion in equity and $4.5 billion including debt. Tri Pointe brings Sumitomo Forestry its first footprint in California and Nevada and adds higher-priced move-up and luxury homes. The deal closed in May 2026. The deal The $47 cash price was a 29% premium to Tri Pointe's closing price of $36.57 on February 12, 2026, the day before the announcement. It equals about 17 times Tri Pointe's 2025 diluted earnings of $2.72 a share. The deal was structured as a merger in which Tri Pointe became a wholly owned subsidiary of Sumitomo Forestry America. Sumitomo Forestry secured a debt financing commitment equivalent to $5.4 billion and funded the purchase with a bridge loan, planning to refinance it with longer-term borrowing and hybrid financing within about a year. It said it did not plan any financing that would dilute its common shares. In August and September 2026 it signed subordinated syndicated loans and decided to issue hybrid bonds to repay part of the bridge. Morgan Stanley and Mitsubishi UFJ Morgan Stanley Securities advised Sumitomo Forestry, with Morrison & Foerster as legal counsel. Moelis & Company advised Tri Pointe and gave a fairness opinion. The merger agreement set a termination fee of $82.3 million payable by Tri Pointe in cases such as accepting a superior proposal. About Tri Pointe Tri Pointe delivered 4,947 homes in 2025, down from 6,460 in 2024, and home sales revenue fell to $3.4 billion from $4.4 billion. The average selling price was about $680,000. Net income available to common stockholders was $241.1 million, against $458.0 million a year earlier. It ended 2025 with $982.8 million in cash. The company keeps its brand, its Irvine headquarters, its 17 divisions and its financial services arm, with CEO Doug Bauer and President Tom Mitchell staying on. Sumitomo Forestry's existing US builders include DRB Group, Bloomfield Homes, Edge Homes and MainVue Homes. It began buying into US homebuilding with a 60% stake in DRB Group in January 2016. Approvals and timeline Tri Pointe stockholders approved the merger at a special meeting on April 16, 2026. About 78% of the shares were represented, and 99.99% of those voted in favor. A separate advisory vote on merger-related executive pay did not pass. The Hart-Scott-Rodino waiting period expired at 11:59 p.m. Eastern Time the same day, and the deal closed on May 14.
