Larry Mizel’s Richmond American Homes to be sold in $4.9B deal

Richmond American Zinc

A Richmond American Homes model. (Courtesy Richmond American Homes)

The Denver-based publicly traded homebuilder that operates as Richmond American Homes is being acquired by a Japanese firm in a $4.9 billion deal.

MDC Holdings, which Larry Mizel founded in 1972, announced Thursday that it has agreed to be acquired by a subsidiary of Osaka-based Sekisui House Ltd.

The deal, expected to close by the end of June, calls for Sekisui House to pay $63 per share.

Shares of MDC stock, which closed Wednesday at just over $53, surged when markets opened Thursday and ended the day at just under $63, indicating shareholders expect the deal to close.

Sekisui House said in a news release that it has delivered about 2.6 million homes worldwide since it was founded in 1960. The company’s brands include Woodside Homes, Holt Homes, Chesmar Homes and Hubble Homes.

Upon closing, Sekisui House would become the fifth largest housebuilder in the U.S. based on the number of houses closed in 2022, the companies said.

Larry A

Larry Mizel

Mizel stepped down as CEO of MDC in 2020 but continues to serve as the company’s executive chairman.

“In our remarkable journey, marked by the construction of over 240,000 homes, we’ve emerged as a top 10 homebuilder in the United States. Our ability to navigate through varying housing market cycles while maintaining business resilience speaks to our strategic prowess, and has led not only to the creation of significant shareholder value, but also to an industry-leading dividend yield for our shareholders,” Mizel said in a statement.

“Sekisui House’s technology and processes are well-regarded, and we look forward to partnering with a company that shares our belief in delivering customers with high-quality homes and a streamlined, comprehensive homebuying experience,” Mizel said.

Mizel and David Mandarich, the company’s CEO, together own approximately 21 percent of MDC shares, the companies said. That makes the men poised to split a $1 billion payout. About two-thirds of that will go to Mizel, based on a more detailed breakdown of ownership included in a company financial filing last March.

MDC’s headquarters are at 4350 S. Monaco St. in Denver. The firm sold $5.59 billion worth of homes in 2022, according to financial filings.

Vestra Advisors served as financial advisor to MDC during negotiations, according to the company. New York-based Paul, Weiss, Rifkind, Wharton & Garrison served as legal advisor, with assistance from Denver’s Brownstein Hyatt Farber Schreck.

Mizel, 81, graduated from the University of Oklahoma and the University of Denver’s law school. He founded the Mizel Museum in east Denver in 1982. The facility “addresses today’s social justice issues through the lens of Jewish history and values,” according to its website. He also started Denver’s Counterterrorism Education Learning Lab and co-founded the Simon Wiesenthal Center in Los Angeles and the Museum of Tolerance in Jerusalem.

Mizel has also been a major political donor, giving $830,000 to federal candidates in the 2022 election cycle, according to a Colorado Sun analysis. He generally supported conservative candidates and causes but was the most bipartisan of Colorado’s top 10 donors that cycle, the Sun found. He was a co-chair of Gov. Jared Polis’ 2023 inaugural committee.

Richmond American Zinc

A Richmond American Homes model. (Courtesy Richmond American Homes)

The Denver-based publicly traded homebuilder that operates as Richmond American Homes is being acquired by a Japanese firm in a $4.9 billion deal.

MDC Holdings, which Larry Mizel founded in 1972, announced Thursday that it has agreed to be acquired by a subsidiary of Osaka-based Sekisui House Ltd.

The deal, expected to close by the end of June, calls for Sekisui House to pay $63 per share.

Shares of MDC stock, which closed Wednesday at just over $53, surged when markets opened Thursday and ended the day at just under $63, indicating shareholders expect the deal to close.

Sekisui House said in a news release that it has delivered about 2.6 million homes worldwide since it was founded in 1960. The company’s brands include Woodside Homes, Holt Homes, Chesmar Homes and Hubble Homes.

Upon closing, Sekisui House would become the fifth largest housebuilder in the U.S. based on the number of houses closed in 2022, the companies said.

Larry A

Larry Mizel

Mizel stepped down as CEO of MDC in 2020 but continues to serve as the company’s executive chairman.

“In our remarkable journey, marked by the construction of over 240,000 homes, we’ve emerged as a top 10 homebuilder in the United States. Our ability to navigate through varying housing market cycles while maintaining business resilience speaks to our strategic prowess, and has led not only to the creation of significant shareholder value, but also to an industry-leading dividend yield for our shareholders,” Mizel said in a statement.

“Sekisui House’s technology and processes are well-regarded, and we look forward to partnering with a company that shares our belief in delivering customers with high-quality homes and a streamlined, comprehensive homebuying experience,” Mizel said.

Mizel and David Mandarich, the company’s CEO, together own approximately 21 percent of MDC shares, the companies said. That makes the men poised to split a $1 billion payout. About two-thirds of that will go to Mizel, based on a more detailed breakdown of ownership included in a company financial filing last March.

MDC’s headquarters are at 4350 S. Monaco St. in Denver. The firm sold $5.59 billion worth of homes in 2022, according to financial filings.

Vestra Advisors served as financial advisor to MDC during negotiations, according to the company. New York-based Paul, Weiss, Rifkind, Wharton & Garrison served as legal advisor, with assistance from Denver’s Brownstein Hyatt Farber Schreck.

Mizel, 81, graduated from the University of Oklahoma and the University of Denver’s law school. He founded the Mizel Museum in east Denver in 1982. The facility “addresses today’s social justice issues through the lens of Jewish history and values,” according to its website. He also started Denver’s Counterterrorism Education Learning Lab and co-founded the Simon Wiesenthal Center in Los Angeles and the Museum of Tolerance in Jerusalem.

Mizel has also been a major political donor, giving $830,000 to federal candidates in the 2022 election cycle, according to a Colorado Sun analysis. He generally supported conservative candidates and causes but was the most bipartisan of Colorado’s top 10 donors that cycle, the Sun found. He was a co-chair of Gov. Jared Polis’ 2023 inaugural committee.

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