The builder Tri Pointe Homes Inc. (NYSE: TPH) is being acquired by Japan’s Sumitomo Forestry for $47.00 per common share, in an all-cash transaction valued at approximately $4.5 billion.
Founded in 2009, Tri Pointe Homes focuses on the Western, Southwestern, and Southeastern regions. Sumitomo Forestry Group’s multiple global endeavors include forestry management, the manufacture and distribution of wood building materials, the contracting of single-family homes and medium- to large-scale wooden buildings, real estate development, and wood biomass power generation.
Upon completion of the transaction, Tri Pointe Homes will continue as a wholly owned subsidiary of Sumitomo Forestry America Inc. Tri Pointe Homes common stock will no longer be listed and traded on the New York Stock Exchange or any other public exchange.
Doug Bauer, CEO of Tri Pointe Homes, stated, “For 17 years, Tri Pointe Homes has been dedicated to serving families and communities as an innovative national homebuilder with a local mindset. Partnering with Sumitomo Forestry is a natural evolution in Tri Pointe Homes’ growth and reflects the strengths of our differentiated business strategy, premium brand, and design-driven approach. This transaction delivers compelling cash value for our stockholders while accelerating our long-term growth strategy as an independent brand within a scaled, multi-faceted platform. Sumitomo Forestry’s expertise across the housing value chain will support our shared mission to serve the next generation of homebuyers.”
Toshiro Mitsuyoshi, president and CEO of Sumitomo Forestry, added, “The addition of Tri Pointe Homes represents a significant step forward in advancing our growth strategy. Tri Pointe Homes shares our focus on quality, customer experience, and a culture that empowers local operating teams. Through the acquisition, we expect to further enhance our profitability by leveraging the complementary strengths of Tri Pointe Homes and each of the five homebuilders within our group. Sumitomo Forestry aims to achieve the goal of supplying 23,000 homes annually in the U.S. by 2030 as set forth in its long-term vision “Mission TREEING 2030”.
Photo courtesy of Tri Pointe Homes
