SEKISUI HOUSE, LTD. ("Sekisui House"), Japan's leading homebuilder and leading diversified developer, announced today that its wholly-owned U.S. subsidiary, Sekisui House US Holdings, LLC, through its wholly-owned subsidiary, SH Residential Holdings, LLC, has entered into a definitive agreement with Chesmar Group, Inc. to acquire Chesmar Homes, LLC, a Texas-based homebuilder; CLM Mortgage, Inc.; Entitled Insurance, Inc., and N Title, Inc. (collectively, "Chesmar"), for an estimated purchase price of approximately $514 million.
Chesmar is a leading developer of single-family homes in Texas, with operations in Houston, San Antonio, Austin and Dallas - Fort Worth. The company owns and controls over 6,000 lots and closed 2,082 homes in 2021. Chesmar, additionally, offers mortgage and title services through its subsidiaries, CLM Mortgage Inc. and N Title Inc. Chesmar delivered consolidated net sales of approximately $810 million in 2021.
Sekisui House celebrated its 60th anniversary in 2020 and has set a vision of "making its homes the happiest places in the world" over the next 30 years. To realize this vision, Sekisui House is promoting the adoption of Sekisui House technologies, representing a suite of housing construction technologies and lifestyle-oriented design solutions in its international markets.
Sekisui House has an established presence in the U.S. housing market through its acquisitions of Woodside Homes Company, LLC in 2017 and Holt Group Holdings, LLC in 2021, delivering over 3,400 homes in 2021, and expanding operations across Utah, California, Arizona, Nevada, Oregon and Washington.
The transaction with Chesmar expands Sekisui House's footprint into four of the six largest housing markets in the U.S. and brings Sekisui House closer to its goal of supplying 10,000 homes per year on a global basis outside of Japan by fiscal 2025. As a part of Sekisui House, Chesmar will have access to capital and technology that will allow it to accelerate its growth plan, further strengthen profitability and operational efficiency and enhance its ability to serve its growing customer base.
"We are excited to partner with Chesmar to capitalize on compelling opportunities in the Texas market," said Rick Robideau, CEO, SH Residential Holdings, LLC. "The addition of Chesmar to the Sekisui House family enables us to gain immediate scale in several leading markets in the attractive Texas region. We believe that we can provide the capital and efficiencies to help Chesmar grow and enhance its competitive position while continuing to build dream homes for Texas families."
"Chesmar Homes has been the adventure of my life", said Don Klein, founder and CEO of Chesmar. "It has been extremely rewarding to watch our people ("Chesmarians") and the company grow. We look forward to being part of Sekisui House's collection of companies and supporting its goal of creating over 10,000 happy customers annually in its international markets."
The transaction is subject to the satisfaction of customary closing conditions and regulatory approvals. Sekisui House plans to acquire an interest in Chesmar Homes, LLC on July 1, 2022. The acquisition of interests in CLM Mortgage, Inc. and N Title, Inc. is expected to be executed following approvals by administrative and tax authorities and close on December 30, 2022.
Citi, Hearthstone and Morrison & Foerster LLP advised Sekisui House. Builder Advisor Group, Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Krage & Janvey LLP advised Chesmar.
About Sekisui House
Founded in 1960, Sekisui House, Ltd. is one of world's largest homebuilders and an international diversified developer, with cumulative sales of over 2.5 Million homes1. Based in Osaka, Sekisui House has over 300 consolidated subsidiaries and affiliates2, over 28,000 employees3 and is listed on the Tokyo Stock Exchange and Nagoya Stock Exchange.
Sekisui House aims to create homes and communities that improve with time and last for generations. With "Love of Humanity" as its Corporate Philosophy, Sekisui House believes that homes should offer comfort, security and peace of mind for residents, while maintaining harmony with the environment and its surroundings. Sekisui House has sustainability as a core corporate target and is now the global leader in the construction of net-zero-energy homes with more than sixty thousand4 of them built since the product was launched in 2013. In 2009, Sekisui House expanded into several new international markets and now operates in the United States, China, Singapore, Australia and the United Kingdom.
*1. 2,506,598 homes delivered (As of January 31, 2021)
*2. 303 consolidated subsidiaries and affiliates (As of July 31, 2021)
*3. 28,013 employees (As of January 31, 2021)
*4. 60,843 net-zero-energy homes (As of March 31, 2021)
Media Contact:
Erin Willis | erin.willis@woodsidehomes.com
Press Release Service by Newswire.com
Original Source: Sekisui House, Japan's Leading Homebuilder and Diversified Developer, Announces Agreement to Acquire Chesmar Homes of Texas
