Sumitomo Forestry Co., Ltd. announced that its United States subsidiary DRB Group has signed a business acquisition agreement with Builders Professional Group, LLC, which carries out homebuilding business under the Knight Homes brand centered on the Atlanta area in the state of Georgia in the United States - to further expand the area served by DRB. This will be the Sumitomo Forestry Group’s first venture into the Atlanta area for single family housing business.
The Sumitomo Forestry Group is putting effort to expand business in the United States. Currently, single family housing business is deployed in 11 states across the United States centered on the growth area known as the Sun Belt. So far, the Sumitomo Forestry Group has ventured into the Dallas and Houston areas in Texas, which have the largest and second largest housing markets in the United States respectively, as well as other areas such as the rapidly growing Salt Lake City area in Utah, and the states of North and South Carolina on the East Coast. Business expansion is being undertaken steadily against a backdrop of growth in the housing market based on population growth and actual demand. In 2019, approximately 8,000 units were delivered.
By venturing into the Atlanta area - which has the third largest market in the United States - through this business acquisition, the Sumitomo Forestry Group has gained a business foothold in a new area of growth within the United States.
Knight Homes, the subject of business acquisition this time, is a housing construction company that sells approximately 700 units annually in the states of Georgia and Alabama, mainly in the southern part of Atlanta.
Through this business acquisition, the Sumitomo Forestry Group’s single family housing business has expanded in its scale of sales together with the expansion in business area, making a significant move toward establishing a system that sells 10,000 units annually within the United States alone.
