8-KOther EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Corporate Update (Oct 10, 2017)

Filed October 10, 2017For Securities:DHI

Summary

This 8-K filing reports that D.R. Horton, Inc. (DHI) has successfully completed its acquisition of approximately 75% of Forestar Group Inc. (FOR) common stock on October 5, 2017, through a merger. This transaction integrates Forestar as a subsidiary of D.R. Horton, marking a significant strategic move for the company in its homebuilding operations. Investors should note that the acquisition was structured to allow for either cash or Forestar stock as consideration, with the final ownership split reflecting DHI's control while allowing former Forestar stockholders to retain a 25% stake. The total consideration paid by D.R. Horton for this stake amounted to approximately $558.3 million. Concurrently with the merger's closing, a Stockholder's Agreement and a Master Supply Agreement between D.R. Horton and Forestar also became effective. These agreements, previously disclosed, govern the relationship and operational arrangements between the two entities moving forward. The company issued a joint press release with Forestar on October 5, 2017, to announce the consummation of this merger.

Key Highlights

  • 1D.R. Horton (DHI) completed the acquisition of approximately 75% of Forestar Group Inc. (FOR) on October 5, 2017.
  • 2Forestar Group Inc. is now a subsidiary of D.R. Horton following the merger.
  • 3The acquisition involved a total consideration of approximately $558.3 million paid by D.R. Horton.
  • 4Forestar stockholders could elect to receive either $17.75 in cash or one share of Forestar common stock per share.
  • 5The merger was structured to result in D.R. Horton owning 75% and former Forestar stockholders owning 25% of Forestar's common stock.
  • 6A Stockholder's Agreement and a Master Supply Agreement between DHI and Forestar became effective concurrently with the merger closing.
  • 7The company issued a joint press release on October 5, 2017, announcing the completion of the merger.

Frequently Asked Questions

This filing announces the completion of D.R. Horton's acquisition of approximately 75% of Forestar Group Inc. through a merger, integrating Forestar as a subsidiary. It also confirms the effective date of related agreements.

D.R. Horton paid an aggregate consideration of approximately $558,256,373 for its 75% stake in Forestar Group Inc.

Forestar stockholders could elect to receive either $17.75 in cash or one new share of Forestar common stock for each share they held, subject to proration to achieve the 75%/25% ownership split.

Yes, a Stockholder's Agreement and a Master Supply Agreement between D.R. Horton and Forestar became effective concurrently with the merger closing, governing their relationship and operational arrangements.