Starwood Capital Group To Buy Forestar Group For $605 Mln Cash

(RTTNews) - Forestar Group Inc. (FOR) announced that it has entered definitive merger agreement with affiliates of Starwood Capital Group under which Starwood to acquire for Forestar Group for $14.25 per share in cash. The total transaction equity value is approximately $605 million. The transaction is expected to close in the third quarter of 2017.

Forestar Group board of directors unanimously approved the merger agreement and has recommended approval of the merger by Forestar's stockholders.

Forestar said that the transaction price of $14.25 per share represents an 8.2% premium to the 90-day volume weighted average price of common stock of the Company.

"Over the past 18 months Forestar has significantly reduced costs and outstanding debt, exited non-core assets and focused on its core community development business. While executing these key initiatives, the Board and management have been evaluating longer term strategic alternatives," said James A. Rubright, Chairman of the Board. "After conducting a thorough review assisted by highly experienced financial and legal advisors, the Board believes that engaging in the transaction with Starwood is the best option to maximize stockholder value."

In light of today's announcement, Forestar will not issue an earnings release for its first quarter 2017 or hold a conference call for analysts and investors to discuss its first quarter 2017 financial results.