All data are based on the daily closing price as of May 24, 2024

Sekisui House Acquires MDC Holdings, Entering Top Ranks of U.S. Homebuilders

Japanese firm Sekisui House's $4.95 billion deal for Denver-based MDC Holdings marks a significant expansion in the U.S. housing market
s 1928.TSE Blue Chip 150
Share this on

Japanese homebuilding giant Sekisui House has announced a major foray into the U.S. housing market with the acquisition of Denver-based MDC Holdings for approximately $4.95 billion in cash. This strategic move positions Sekisui as the fifth-largest homebuilder in the United States.

Under the terms of the deal, Sekisui House will pay $63 per share for MDC, representing a 19% premium over MDC’s closing price on Wednesday. The announcement triggered a 16% rise in MDC shares in premarket trading.

Sekisui House CEO Yoshihiro Nakai, speaking at a press conference, outlined the significance of this acquisition. It not only doubles Sekisui’s presence in the U.S. to 16 states but also accelerates the company’s objective to deliver 10,000 homes annually in overseas markets by 2025. Nakai emphasized the enhanced stature this deal brings to Sekisui in the U.S. housing industry.

David Mandarich, MDC’s chief executive, expressed optimism about the acquisition, foreseeing new growth opportunities across their operational footprint. He highlighted the potential benefits for both team members and customers as part of Sekisui House’s U.S. family of brands.

Sekisui House is currently evaluating the acquisition’s impact on its earnings forecast for the next financial year, which begins in February. As a result of this deal, the company will halt its share buyback activities.

This acquisition follows Nippon Steel’s significant $14.9 billion purchase of U.S. Steel last month, underscoring a trend of major Japanese corporations expanding their footprint in the United States through strategic acquisitions. Sekisui House’s entry into the top echelons of the U.S. homebuilding market marks a notable development in the global real estate sector, reflecting the company’s ambitious growth strategy.

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top