Dream Finders Homes Inc. (NYSE: DFH) has announced its acquisition of Beazer Homes USA Inc. (NYSE: BZH) in an all-cash transaction at an enterprise value of approximately $2.2 billion.
Under the terms of the agreement, Beazer shareholders will receive $33.50 in cash for each share of Beazer common stock, representing an implied purchase price-to-book multiple of 0.8x. Dream Finders expects to finance the transaction through a combination of existing capital resources and committed financing from Goldman Sachs, Bank of America, and affiliates of Kennedy Lewis Asset Management.
Dream Finders began pursuing Beazer in May when it made an unsolicited bid with a proposed all-cash transaction of $25.75 per share that would have created a total equity value of approximately $704 million. Beazer rejected the proposal, stating it was not interested in being acquired while noting its “most recently reported book value was $41.83 per share.”
Upon closing, the combined company will operate in 26 markets and approximately 520 communities across the Southeast, Mid-Atlantic, Texas, the West, and the Midwest. The companies said the combined entity will become the nation’s sixth largest homebuilder.
Patrick Zalupski, founder, CEO and co-chairman of Dream Finders, said, “As someone who started Dream Finders from the ground up, I know what it takes to build a culture that puts homebuyers first, and that’s exactly what I see in Beazer. They have built something genuinely special – a talented team, strong communities, and a culture that puts customers at the center of everything they do. That resonates deeply with us. This combination is the next meaningful step in our journey to become a top five national homebuilder, expanding our geographic reach, broadening the range of buyers we can serve, and strengthening the integrated services we offer families from contract to close.”
Allan P. Merrill, chairman, president and CEO of Beazer Homes, added, “Over nearly 20 years, we have transformed Beazer into one of the nation’s largest homebuilders through a strategy focused on delivering on energy efficient homes and best-in-class customer experiences. This transaction represents the culmination of a comprehensive review of opportunities to maximize value and provides Beazer shareholders with a significant and certain cash return in an uncertain market. I am proud of our people and want to thank our entire organization for their exceptional work to ensure that, together with Dream Finders, we continue providing homebuyers across the country with a high-quality product and outstanding service.”
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