TOKYO (Reuters) – Sekisui House (1928.T), opens a new tab announced on the 18th that MD announced that it will acquire C. Holdings (MDC.N), opens a new tab (Colorado) for approximately $4.9 billion ( about 720 billion yen).
The acquisition price per share was $63, 19% higher than MDC’s closing price on the 17th. All shares will be acquired through the US business headquarters.
The acquisition will be financed by a bridging loan from a bank. The investment will be converted to long-term funding within one year of completion of the acquisition. In addition, the company will delay the acquisition of its own shares next financial year.
According to Sekisui House, MDC operates in 34 cities in 16 states and had sales of about $5.7 billion (about 840 billion yen) in fiscal 2022. The number of units provided in the same financial year was 9,710, ranking 11th in the United States. With this acquisition, Sekisui House will be the fifth largest company in the US based on the number of units delivered in fiscal 2022.
MDC is expected to become a consolidated subsidiary of Sekisui House during the financial year ending January 2025. The impact on consolidated results is currently being examined.
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