Sekisui House to Expand U.S. Homebuilding Footprint with $4.9 Billion M.D.C. Holdings Merger

By Adriano Marchese

M.D.C. Holdings and Japanese house manufacturer Sekisui House are set to merge into one of the largest homebuilders in the U.S. in an all-cash transaction with an equity value of $4.9 billion, the two companies said in a joint statement Thursday.

Under the terms of the agreement, shareholders of M.D.C., a U.S.-based homebuilder, will be acquired by a wholly owned subsidiary of Sekisui House, receiving $63.00 a share in cash.

M.D.C.'s stock has been on an upward trend over the last 12 months, rising nearly 48% to $53.09 a share.

The offer represents a 19% premium to M.D.C.'s closing stock price on Wednesday, and a premium of about 41% its 90-day volume-weighted average trading price.

The new combined company expects to leverage Sekisui House technologies and building practices to support delivery of higher-quality M.D.C. houses that strengthen its position in the key states in which it operates.

After the merger is completed, Sekisui House will become the fifth-largest homebuilder in the U.S. based on the number of houses closed in 2022 as it looks to reach its goal of supplying 10,000 houses outside of Japan by 2025 sooner than expected.

The acquisition is expected to close in the first half of this year.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

January 18, 2024 06:44 ET (11:44 GMT)

Grafico Azioni Sekisui House Spn Adr (PK) (USOTC:SKHSY)
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