November 5, 2018
Asahi Kasei Homes Corp.

Asahi Kasei Homes Corp. has concluded an agreement to acquire Erickson Framing Operations LLC (Erickson), a US company which offers pre-fabricated building products to single-family homebuilders, through a US subsidiary. The agreement was concluded on November 2, 2018 (US Eastern time), with Erickson Framing Holdings LLC, owner of 100% of Erickson.

Background

While continuing to expand its existing business centered on Hebel Haus™ order-built unit homes, Asahi Kasei Homes is also working to create new business in new fields with new business models. Having identified overseas business as one avenue for new business creation, Asahi Kasei Homes entered into a capital alliance with Australian homes constructor McDonald Jones Homes Pty Ltd. in 2017, and continued to explore opportunities to leverage its strengths in North America.

Objectives of the acquisition

A leading US provider of building components including panelized walls and roof trusses for wooden houses, Erickson serves homebuilders by supplying and installing the building components for more than 3,000 houses per year. Whereas houses in the US are generally built by fabricating and assembling at the construction site, Erickson’s panelized framing systems streamline the construction process by pre-fabricating components at a factory to be shipped and erected at the building site. As construction costs in the US continue to climb due to a persistent manpower shortage and rising material prices, there is growing demand for pre-fabricated building systems which enable cost reduction with less labor and shorter construction time. Asahi Kasei Homes believes that this presents an opportunity to leverage the systemization know-how gained through its business of providing high quality and high value-added Hebel Haus™ order-built unit homes in Japan, leading to further enhancement of Erickson’s pre-fabricated building system in order to create new value for the US housing market.

Procedures to close the transaction

Closing of the transaction is conditional upon obtaining approval from the relevant authorities.

Overview of Erickson Framing Operations LLC

CEO

Rich Gallagher

Corporate office

Chandler, Arizona, the United States

Establishment

1975

Employees

1,074 (at end of October 2018)

Operations

Manufacture, sales, and installation of panelized walls and trusses, along with doors and trim

Market area

Arizona, California, and Nevada

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