Tri Pointe Homes Inc. saw its shares surge in premarket trading after the company reached an agreement to be acquired by Sumitomo Forestry (TSE:1911) in an all-cash transaction valued at approximately $4.5 billion. Tri Pointe stock jumped 26.7% in premarket trading Friday on the news.
Under the terms agreed by the companies, Tri Pointe stockholders will receive $47.00 in cash for each share they hold. That price represents a 29% premium to Tri Pointe’s closing price on February 12 and a 42% premium to its 90-day volume-weighted average price. The offer also tops the company’s prior all-time high closing stock price.
The acquisition will expand Sumitomo Forestry’s footprint in the U.S. housing market by adding Tri Pointe’s operations across more than 150 active communities in 13 high-growth states. Tri Pointe delivered over 6,400 homes in 2024 and, across its 17-year history, has built more than 58,000 housing units.
Doug Bauer, Chief Executive Officer of Tri Pointe Homes, commented on the transaction, saying: "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."
Following the close of the transaction, which is expected in the second quarter of 2026, Tri Pointe will continue to operate as a distinct brand within Sumitomo Forestry’s portfolio of U.S. homebuilders. The company will retain its existing management team, maintain its headquarters in Irvine, California, and preserve its 17 divisions.
For Sumitomo Forestry, the purchase advances a stated long-term objective of delivering 23,000 homes annually in the U.S. by 2030. Toshiro Mitsuyoshi, President of Sumitomo Forestry, said the acquisition "represents a significant step forward in advancing our growth strategy."
The transaction does not include a financing condition, according to the companies. It remains subject to approval by Tri Pointe stockholders and other customary closing conditions. Once the deal is completed, Tri Pointe’s common stock will be delisted from the New York Stock Exchange.
Key points
- Tri Pointe agreed to a $47.00 per-share all-cash acquisition by Sumitomo Forestry, valuing the deal at about $4.5 billion.
- The offer provides a 29% premium to the February 12 close and a 42% premium to the 90-day VWAP and exceeds Tri Pointe’s historic closing high.
- The transaction expands Sumitomo Forestry’s U.S. presence by adding more than 150 active communities across 13 states; Tri Pointe delivered over 6,400 homes in 2024 and has built over 58,000 units in its 17-year history.
Risks and uncertainties
- The deal requires approval from Tri Pointe stockholders and is subject to customary closing conditions, introducing execution risk and potential timing variability for sectors tied to housing and construction.
- Although the transaction is not subject to a financing condition, regulatory or other customary closing conditions could still delay or prevent completion, affecting markets and stakeholders in homebuilding and related supply chains.
- Upon closing, Tri Pointe’s common stock will be delisted from the New York Stock Exchange, changing the trading and liquidity profile for investors in the residential construction sector.