Denver-based construction company M.D.C. is getting a financial boost from Japanese homebuilder Sekisui House.
Sekisui is acquiring M.D.C. in a cash deal for $4.9 billion. M.D.C. owns Richmond American Homes, one of the largest homebuilding companies in Colorado.
The combined company will be the fifth largest homebuilder in the U.S., according to a joint statement from M.D.C and Sekisui. The deal is expected to close sometime in the next six months. It still has to be approved by M.D.C. shareholders and regulators.
"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,” Yoshihiro Nakai, CEO of Sekisui House, said in the statement. “It will also allow us to achieve our goal of supplying 10,000 homes outside of Japan [by 2025].”
M.D.C. CEO David Mandarich said the deal offers the company new growth opportunities. Shares of M.D.C surged when the deal was announced.
