By Matt Wasielewski | Bisnow.com
A centuries-old Japanese logging conglomerate struck a $4.5B deal to buy Tri Pointe Homes.
Sumitomo Forestry Co., a logging firm founded in 1691 that has been buying up U.S. homebuilders, agreed to pay a 29% premium on the Thursday closing price of Tri Pointe’s stock in an all-cash deal that will take the company private while keeping current management and operations in place.
The deal was unanimously approved by the boards of directors at both firms and is expected to close in the second quarter, pending a shareholder vote, the companies announced Friday.
“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,” Tri Pointe CEO Doug Bauer said in a statement. “This transaction delivers compelling cash value for our stockholders while accelerating our long-term growth strategy as an independent brand.”
