Sekisui House announced that its wholly owned U.S. subsidiary, Sekisui House US Holdings, through its wholly owned subsidiary, SH Residential Holdings, has entered into a definitive agreement with Chesmar Group to acquire Chesmar Homes, CLM Mortgage, Entitled Insurance, and N Title for an estimated purchase price of approximately $514 million.

Chesmar Homes—No. 40 on the 2022 Builder 100—builds single-family homes in Texas, with operations in Austin, Dallas, Houston, and San Antonio. The company owns and controls over 6,000 lots and closed 2,082 homes with consolidated net sales of approximately $810 million in 2021. Additionally, Chesmar offers mortgage and title services through its subsidiaries, CLM Mortgage and N Title.

"We are excited to partner with Chesmar to capitalize on compelling opportunities in the Texas market," says Rick Robideau, CEO of SH Residential Holdings. "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."

Sekisui House has established a presence in the U.S. housing market through its acquisitions of Woodside Homes in 2017 and Holt Group in 2021, delivering over 3,400 homes in 202, and expanding operations across Arizona, California, Nevada, Oregon, Utah, 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 the company 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.

"Chesmar Homes has been the adventure of my life,” says Don Klein, founder and CEO of Chesmar. "It has been extremely rewarding to watch our people 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 on July 1. The acquisition of interests in CLM Mortgage and N Title is expected to be executed following approvals by administrative and tax authorities and close Dec. 30.

Citi, Hearthstone, and Morrison & Foerster advised Sekisui House. Builder Advisor Group; Paul, Weiss, Rifkind, Wharton & Garrison; and Krage & Janvey advised Chesmar.