Sumitomo Forestry is rapidly expanding its interests in the US housing market after agreeing to acquire Tri Pointe Homes in a US$ 4.5 billion deal that will create the fifth‑largest homebuilder in the United States.
Wood Central understands that the latest acquisition strengthens its position in the US single‑family housing market — now responsible for 60 per cent of its recurring income in the United States — while giving it long‑sought access to California and Nevada after earlier expansions in Texas and the southeast.
And with Japan facing a glut of vacant single‑family homes, the move marks a major step toward Sumitomo Forestry’s goal of supplying 23,000 US homes annually by 2030, according to Toshio Mitsuyoshi, CEO and President of Sumitomo Forestry, the parent company that controls Sumitomo’s global interests.
“Tri Pointe Homes shares our focus on quality, customer experience and a culture that empowers local operating teams,” Mitsuyoshi said. “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.”
Founded in 2009, Tri Pointe has built more than 58,000 single-family homes, including 6,400 in 2024, and operates 150 active communities across 13 states. The NYSE‑listed builder is known for its “move‑up” product, with an average selling price of $680,000, one of the highest in the US public homebuilding sector.
Under the deal, shareholders will receive $47 per share in cash, a 42 per cent premium to the 90‑day VWAP and above the company’s all‑time closing high. The boards of both companies have unanimously approved the merger, with closing expected in Q2 2026, pending shareholder and regulatory approval.
“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.”
Crucially, the deal positions Sumitomo Forestry ahead of rival Sekisui House, which bought MDC Holdings for $4.95 billion in 2024. It also builds on Sumitomo’s growing US multifamily presence, including joint ventures with Hines and Fairfield Residential, as well as its 90 per cent stake in Texas‑based developer JPI Group.
In recent years, Sumitomo Forestry has expanded its interest in the US and Australian housing markets – both considered major growth markets – with Wood Central last year revealing that Sumitomo Forestry now owns more than 18% of housing starts from Australia’s top 20 builders.
