D.R. Horton Inc. and Forestar Group Inc. announced the closing of D.R. Horton’s previously announced acquisition of approximately 75% of the currently outstanding shares of Forestar for $17.75 per share in cash pursuant to a merger of a wholly owned subsidiary of D.R. Horton with and into Forestar. Pursuant to the terms of the merger agreement signed on June 29, 2017, each of the existing members of Forestar’s board of directors resigned, with the exception of M. Ashton Hudson. Effective as of the closing of the transaction, Forestar’s board of directors consists of five directors, including Mr. Hudson, and the following four new directors: Donald J. Tomnitz, former CEO of D.R. Horton, who will serve as executive chairman of Forestar; Samuel R. Fuller; G.F. (Rick) Ringler, III; and Donald C. Spitzer.
Forestar Group Inc. is a residential lot development company. The Company is focused primarily on making investments in land acquisition and development to sell finished single-family residential lots to homebuilders. The Company operates through its real estate segment. The real estate segment primarily acquires land and installs infrastructure for single-family residential communities, and its revenues generally come from sales of residential single-family finished lots to local, regional and national homebuilders. Its real estate segment conducts a range of project planning and management activities related to the entitlement, acquisition, community development and sale of residential lots. The Company has operations in over 52 markets and approximately 20 states and its lot position consisted of 90,100 residential lots, of which approximately 61,800 were owned and 28,300 were controlled through purchase contracts.