D.R. Horton Inc. completed its acquisition of 75% of Forestar Group Inc.'s outstanding shares.
D.R. Horton is now Forestar's controlling shareholder and will guide its strategic growth and operational execution. The transaction also creates a strategic relationship between the companies for the supply of developed lots.
As a result of the deal's closing, all members of Forestar's board resigned, except for M. Ashton Hudson. Joining Hudson on the new board are former D.R. Horton CEO Donald Tomnitz, who will serve as executive chairman; Samuel Fuller; G.F. "Rick" Ringler III; and Donald Spitzer.
Under the terms of the deal, Forestar shareholders had the option to receive $17.75 in cash or one new share of Forestar common stock for each Forestar share owned, subject to proration and adjustment such that D.R. Horton would own 75% of Forestar's common stock.
As shareholders elected to receive cash for more than 75% of Forestar shares, shareholders who elected cash will receive about 90% of their consideration in cash, with the balance in Forestar common stock.