Metricon welcomes strategic partnership with Sumitomo Forestry

Australia’s largest home builder, Metricon, is excited to announce its partnership with Sumitomo Forestry Australia (Sumitomo Forestry), a subsidiary of the renowned Japanese group. This strategic partnership will see Sumitomo Forestry acquiring 51% of Metricon, post completion of conditions while also providing a pathway for 100% ownership after a number of years.

Sumitomo Forestry, known for its global expertise in real estate and global wood-related industries, has a great track record of successful investments in the Australian home building industry, with this partnership marking a significant investment in the future positioning of Metricon.

Metricon CEO, Brad Duggan, says that after months of discussions and negotiations, whilst this strategic partnership marks the beginning of a new chapter, at Metricon it will be business as usual.

“Metricon has worked hard over the past 24 months to return the group to its position of strength, and we are ecstatic that this work has resulted in the establishment of such an important partnership with Sumitomo Forestry. This partnership enhances Metricon’s readiness to respond to the opportunities in the Australian housing market,” Duggan said.

“Both Metricon and Sumitomo Forestry see the great advantages that can be harnessed from working together. The Australian housing industry, more than ever, needs strong participants to solve the issues it currently faces, and this partnership will further build Metricon’s market leading position.

“In Sumitomo Forestry, Metricon has found an exceptional partner that aligns strongly on the importance of legacy and commitment to excellence while also complementing the existing ownership group and management team. Together we are confident we will build a well-considered, long-term strategic future for Metricon, our team and customers.

“With the sale and purchase agreement signed we expect to announce the successfully completed transaction in the coming weeks.”

Since its foundation in 1976, Metricon has built a dominant brand presence across Australia, especially in the key east-coast markets of Victoria, New South Wales, South-East Queensland, and South Australia.

As part of this transaction Metricon will become a consolidated subsidiary of Sumitomo Forestry which is listed on the Tokyo Stock Exchange.

Duggan says under the terms of the deal, Metricon will retain its unique operating model, ensuring that there will be minimal change to its structure, service, market offerings or brand.

“It will be business as usual at our display homes, building sites, our Studio M selection centres, and offices. Our customers can continue to expect the same great level of service and design, with the likelihood of even greater customer outcomes because of this partnership in both the short and long term.

"The owners and shareholders of Metricon are proud to embark on this exciting new chapter in the company’s rich history. This strategic partnership with Sumitomo Forestry strengthens our position in the industry and presents an extraordinary opportunity for future growth. We are confident that together, we will unlock new potential, enhancing our market leadership and creating long-term value for our customers, employees, and stakeholders."

Yasuhiro Odagane, Managing Director of Sumitomo Forestry Australia, says this acquisition is key to helping Sumitomo Forestry achieve its goal of addressing the long-standing housing shortage in Australia.

Odagane added, “This acquisition enables our group to expand the business areas in each state, establishing Sumitomo Forestry as the number one builder in Australia and, most importantly, allowing us to make a substantial contribution to the provision of social infrastructure.”

Sumitomo Forestry Group entered Australia’s housing industry in 2008 and has been expanding its business in major cities ever since. With the added skills and support of Metricon, the group is on track to achieve its goals of promoting the use of timber products in construction and contribute to global decarbonisation efforts.

For further information, please contact Katie James on the details below.

Katie James
katiejames@metricon.com.au
0418 149 041