On top of its 51% equity interest acquired in April 2014, which created a consolidated subsidiary, this additional acquisition to create a wholly-owned subsidiary was implemented through Sumitomo Forestry America, Inc., a wholly owned subsidiary of Sumitomo Forestry.
Positioning its overseas business as a main area for growth, Sumitomo Forestry is building up its housing business in the United States through stakes in four groups doing business in nine states, including Washington, Texas and Maryland.
Having acquired an equity interest in the Gehan Homes Group two years ago in April 2014, preparations for handing over business operations were in place, so the previous management team came to an agreement for the Gehan Homes Group to become a wholly-owned subsidiary of Sumitomo Forestry.
This full acquisition will reinforce the support provided by Sumitomo Forestry for expanding Gehan Homes Group operations, and will accelerate initiatives to create synergies with other Sumitomo Forestry Group companies in the homebuilding business in the United States.
The Sumitomo Forestry group is getting close to its future target of 5,000 homes sold annually in the United States, while its annual target of 8,000 homes for total sales across the United States and Australia is also firmly in its sights.
