You have reached your limit of free articles this month.

Enjoy unlimited access to

Starting at just 99¢ for 8 weeks.


  • ePAPER

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and bonus content- exclusively for subscribers. Starting at just 99¢ for 8 weeks


Welcome to

This subscriber-only site gives you exclusive access to breaking news, in-depth coverage, exclusive interactives and bonus content.

You can read free articles of your choice a month that are only available on

NEW: Austin’s Forestar Group being sold in $605 million deal

Austin-based Forestar Group has agreed to be acquired by Starwood Capital group in a deal worth about $605 million, according to the companies.

Connecticut-based Starwood has agreed to pay $14.25 per share for all outstanding shares of Forestar Group’s common stock, the companies said, which would be a roughly 8 percent premium over Forestar Group’s average share price over the past three months, according to a news release.

The transaction still requires approval of Forestar Group’s shareholders. The company’s board expects the deal to be completed in the third quarter of the year, according to a company news release.

Forestar Group was spun off from the former Temple-Inland Inc. in 2007, and through the years has operated in real estate, oil and gas and other natural resources. It currently operates largely as a residential and mixed-use real estate development company.

The company has been reshaping itself since 2015, when a group of key investors said Forestar needed to make changes in both its management strategy and in its leadership. In September 2015, the company named Phil Weber as its new chief executive officer.

Forestar Group announced in February that it had reached a deal to sell off substantially all of its remaining oil and gas assets for $85.6 million, continuing its divestiture of holdings outside its main residential and mixed-use development portfolio. The company in 2016 sold the Radisson Hotel and Suites in downtown Austin in a $130 million deal.

“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,” Forestar Group chairman James Rubright said in a written statement. “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 2016, Forestar Group reported net income of $58.6 million, or $1.38 per share, on revenue of $218.5 million. As of the end of 2016, the company said it owned directly or through joint ventures interests in 50 residential and mixed-use development projects in 10 states.

Reader Comments ...

Next Up in Business

Up the Ladder

Banking & finance Chase has named Marcus Kline vice president and Austin-area manager of business banking. Community The Greater Austin Hispanic Chamber of Commerce has named Luis Rodriguez president and chief executive officer. Manufacturing & retail Factory Mattress has named Sarah Johnson chief financial officer. Technology Umbel has named Mike...
Have a great workplace? Let us know

Help us spread the word about the best places to work in Austin. Nominations remain open for the American-Statesman’s 2017 Top Workplaces of Greater Austin project, with the nomination deadline extended until July 7. The project recognizes employers that stand for the best in leadership, vision, an employee-centered culture and other qualities...
If Social Security overpays you, you’re still on the hook

Suppose Social Security makes a mistake in determining your benefits. Guess what? Their mistake becomes your mistake, and they will bill you for any amount they overpaid you, even if they told you the benefits in question were yours to collect. This happened to the husband of a woman who I’ll call Dana to protect her identity. Let me call her...
‘Jenga tower’ starting to make mark on Austin’s skyline
‘Jenga tower’ starting to make mark on Austin’s skyline

This week, some Austinites might have noticed a change on the downtown skyline. Construction has progressed to the point that the Independent — nicknamed the “Jenga tower” — has started taking on elements of its defining look as the 58-story condominium project rises toward its place as the city’s tallest building...
Report: Walmart won’t make rival bid for Whole Foods
Report: Walmart won’t make rival bid for Whole Foods

A week after Amazon unveiled plans to acquire Austin-based Whole Foods Market in a deal valued at $13.7 billion, Walmart has decided it won’t put in a rival bid, according to published reports. The Bentonville, Ark.-based retail giant is one of several companies that had reportedly been looking at trying to match or beat Amazon’s $42-per-share...
More Stories