Sumitomo Forestry Co., Ltd. ("Sumitomo Forestry") and Tri Pointe Homes, Inc. ("Tri Pointe Homes") have announced a strategic combination where Sumitomo Forestry will acquire Tri Pointe Homes for US$47.00 per common share in an all-cash transaction valued at approximately US$4.5 billion. This represents an approximately 29% premium to Tri Pointe Homes' closing stock price on February 12, 2026, and an approximately 42% premium to Tri Pointe Homes' 90-day volume weighted average price (VWAP).
Tri Pointe Homes, founded in 2009, has grown into one of the nation’s leading homebuilders with a strong presence across the western, southwestern, and southeastern United States. In 2024, it had over 6,400 home closings. Upon completion of the transaction, Sumitomo Forestry expects to make meaningful progress toward its long-term vision mission treeing 2030 target of 23,000 annual U.S. home sales.
The transaction is expected to be completed in the second quarter of 2026, subject to certain conditions, including approval of the merger by Tri Pointe Homes’ stockholders and other customary conditions. Upon completion of the transaction, Tri Pointe Homes common stock will no longer be listed and traded on the New York Stock Exchange or any other public exchange.
Tri Pointe Homes has reiterated its fourth quarter and full-year 2025 outlook and will issue its full fourth quarter and full-year 2025 results on February 25, 2026.
Mitsubishi UFJ Morgan Stanley and its affiliates, including Morgan Stanley & Co. LLC, are serving as exclusive financial advisor, and Morrison & Foerster LLP is acting as legal counsel to Sumitomo Forestry. Moelis & Company LLC is acting as exclusive financial advisor, and Paul Hastings LLP is serving as legal counsel to Tri Pointe Homes.
Upon completing the transaction, Tri Pointe Homes will become a part of Sumitomo Forestry’s family of U.S. homebuilders and will continue to operate as a distinct brand led by Tri Pointe Homes’ existing management team, supported by Sumitomo Forestry’s scale and investment. Tri Pointe Homes will also maintain its home office in Irvine, CA, its 17 divisions, and financial services operations.
Sumitomo Forestry is engaged in a broad range of global businesses centered on wood, including forestry management, the manufacture and distribution of wood building materials, real estate development, and wood biomass power generation. In its long-term vision mission treeing 2030, the group is seeking to promote the Sumitomo Forestry wood cycle, a value chain to contribute to decarbonization for the whole of society by increasing CO2 absorption of forests and popularizing wooden buildings that store carbon for long periods of time.
Tri Pointe Homes, Inc. (NYSE: TPH) is one of the largest homebuilders in the U.S., with a presence in 13 states and the District of Columbia. It builds premium homes and communities and has established a strong reputation for customer experience, innovative design, and environmentally responsible business practices. As a result of these announcements, the company's shares have moved -0.87% on the market, and are now trading at a price of $35.19. If you want to know more, read the company's complete 8-K report here.
