Sumitomo Forestry America, which is a subsidiary of Tokyo-based Sumitomo Forestry Co., is buying Gehan Homes Ltd., a Dallas homebuilder. Two years ago, the Japanese housing firm has already purchased more than 50% of Gehan, and the Dallas company announced it would sell its remaining ownership to Sumitomo, according to The Dallas Morning News.
In the past year, Gehan Homes' revenue has grown nearly 50 percent. In 2014, Gehan ranked No. 21 on the North Texas Middle Market 50 list with annual revenue in 2014 of nearly $378 million.
“With the sale of the company to Sumitomo Forestry America Inc., Gehan Homes will have added financial strength that will allow the company to be more aggressive in the area of land acquisitions,” said John Winniford, president at Gehan.
Gehan has been functioning for 25 years now and has operations all around Houston, Austin, San Antonio and Phoenix. The company also builds homes for approximately 24 communities, at a $250,000 starting price.
“Sumitomo, as it sought to expand its homebuilding operations in the U.S., was drawn to Gehan Homes due to the solid foundation that had been laid to support its growth, its senior management team, and the company’s culture and commitment to its employees,” Atsushi Iwasaki, president of Sumitomo Forestry America, said.
Sumitomo also acquired half the ownership of Bloomfield Homes L.P. back in 2013, one of the top home builders in North Texas. Back in February this year, Sumitomo bought 60% shares of DRB Enterprises, which owns Dan Ryan Builders (DRB) group in Maryland for 10 billion yen (US $90 million). Sumitomo aims to become one of the top builders in the States.