Starwood to Pay $605M for Austin-Based Forestar

There’s still time to register for Connect Austin. Click here for more information!

Starwood Capital Group has entered into a definitive merger agreement with Austin, TX-based Forestar Group Inc. to acquire outstanding shares of the company for $14.25 per share, in cash. The total transaction equity volume will be approximately $605 million when the deal closes in Q3 2017.

Forestar is a residential and mixed-use real estate development company. At the end of 2016, the company owned directly, or through ventures, interests in 50 residential and mixed-use projects in 10 states and 14 markets. Additionally, the company’s non-core assets include mineral assets, timberland and undeveloped land, as well as multifamily assets.

Forestar’s developments include the master-planned, 2,100-acre Cibolo Canyons in San Antonio, and the 200-acre Barrington Kingwood in Kingwood, TX.

JMP Securities LLC was Forestar’s financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP was the company’s legal advisor. Kirkland & Ellis LLP acted as legal advisor to Starwood.

Subscribe to Connect Daily Texas