Tree species
A Tri Pointe Homes development in Las Vegas (Image: Tri Pointe)
Japan’s Sumitomo Forestry has agreed to acquire Tri Point Homes in a deal valuing the US developer at $4.5 billion, with the combination expected to create America’s fifth-largest homebuilder by sales.
Sumitomo Forestry said the buy would strengthen its US single-family housing business, which accounts for 60 percent of the Tokyo-based group’s recurring income, and secure a foothold in California and Nevada after a previous expansion in Texas and the southeastern states.
With Japan facing a glut of vacant single houses, the addition of Tri Pointe marks a step forward in advancing Sumitomo Forestry’s growth strategy to supply 23,000 homes annually in the US by 2030, said president and CEO Toshiro Mitsuyoshi. Sumitomo Forestry already owns US-based MainVue, Bloomfield, Brightland, DRB and Edge, positioning the Japanese giant as the ninth-largest homebuilder in the country with 11,267 units sold in its fiscal 2024.
“Tri Pointe Homes shares our focus on quality, customer experience and a culture that empowers local operating teams,” Mitsuyoshi said in a release. “Through the acquisition, we expect to further enhance our profitability by leveraging the complementary strengths of Tri Pointe Homes and each of the five homebuilders within our group.”
Moving on Up
Founded in 2009, NYSE-listed Tri Pointe has delivered over 58,000 units to US homebuyers, including more than 6,400 in 2024. The California-based builder has 150 active communities and a presence in 13 states.
Sumitomo Forestry president and CEO Toshiro Mitsuyoshi (Image: Sumitomo Forestry)
Under the deal terms, Tri Pointe shareholders will receive $47 a share in cash, representing a 42 percent premium to the 90-day volume weighted average price and exceeding the stock’s all-time closing high. Major shareholders include US investment managers BlackRock, Vanguard and Fidelity.
The companies’ definitive merger agreement has been unanimously approved by both boards, with closing expected in the second quarter of 2026 after receiving shareholder approval and meeting customary conditions.
“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,” said CEO Doug Bauer. “This transaction delivers compelling cash value for our stockholders while accelerating our long-term growth strategy as an independent brand within a scaled, multi-faceted platform.”
Tri Pointe’s focus on “move-up” homes has driven an average selling price of $680,000, among the highest in the publicly listed US homebuilding sector, according to Sumitomo Forestry.
“The acquisition will further broaden our product line-up and enhance our ability to meet diverse demands of homebuyers across multiple customer segments,” Mitsuyoshi said.
Overseas Appetite
Concluding the Tri Pointe deal would see Sumitomo Forestry leapfrog its compatriots at Osaka-based Sekisui House, which in 2024 acquired US builder MDC Holdings for $4.95 billion to create what was then the fifth-largest homebuilder in the world’s biggest economy.
In the multi-family segment, Sumitomo Forestry has joint ventures with Hines on a 365-unit project and with Fairfield Residential on a 400-unit development, both in the suburbs of Washington DC. The Japanese group purchased a 90 percent stake in Texas-based multi-family developer JPI in 2023 for $158 million.
Sumitomo Forestry also controls Australia’s biggest homebuilder, Metricon, after acquiring a majority stake in the company in 2024.