Japanese house manufacturer Sekisui House, Ltd. (SKHSY) and U.S. homebuilder M.D.C. Holdings, Inc. (NYSE:MDC) announced today an agreement for the former to buy the latter in an all-cash transaction.
The deal, valued at approximately US$4.9 billion, is set to strengthen Sekisui House's presence in the U.S. housing market, the press release said.
MDC shareholders are to receive US$63.00 per share in cash, reflecting a 19% premium over MDC's closing stock price on January 17, 2024, and a 41% premium over MDC's 90-day volume-weighted average trading price.
MDC stock rose 16.9% on the news.
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.”
The acquisition is expected to conclude in the first half of 2024, contingent on various conditions, including approval by MDC's stockholders, regulatory clearances, and other customary requirements.
Larry Mizel and David Mandarich, along with certain affiliates owning approximately 21.2% of MDC's shares, have committed to vote in favor of the transaction.