Dream Finders Homes Inc. (NYSE: DFH) has submitted a proposal to acquire Beazer Homes USA Inc. (NYSE: BZH) in an all-cash transaction of $25.75 per share, creating a total equity value of approximately $704 million.
In a statement, Dream Finders said it “has repeatedly tried to constructively engage with Beazer’s management and board” since February, only to be rebuffed. Dream Finders Chairman and CEO Patrick Zalupski stated the deal would create the seventh-largest US homebuilder.
“As a top 10 shareholder, we are concerned that if Beazer continues to operate on a standalone basis, the company will further erode shareholder value by executing a suboptimal operating and capital allocation strategy, an inefficient cost structure due to limited scale, and incurring excessive build costs, driven by an unsuccessful product strategy,” Zapulski said. “We have made several attempts to engage with Beazer management and the board. While we would have preferred to reach an agreement privately, we are making our interest public for the benefit of all Beazer shareholders. We urge Beazer’s shareholders to encourage the board to engage constructively and meaningfully with Dream Finders to pursue this highly compelling all-cash proposal.”
In conjunction with Dream Finders’ announcement, Millrose Properties Inc. (NYSE: MRP) announced its intent to provide land banking capital to support the proposed acquisition of Beazer Homes. The company said that after the transaction was completed, it would acquire the homesites currently owned by Beazer Homes, adding that it received a letter from Goldman Sachs stating that it was “highly confident that financing of up to $500 million can be arranged in connection with the transaction.”
“We are pleased to demonstrate Millrose’s ability to facilitate capital-efficient M&A through our unique underwriting and operational platform,” said Darren Richman, CEO of Millrose Properties. “This transaction highlights the strategic value of permanent capital paired with disciplined land banking execution. The increase in leverage from this transaction would be a temporary bridge — we remain committed to our normal course leverage policy and expect to return to that level through accretive equity issuance or organic deleveraging from our substantial operating cash flow.”
Beazer Homes did not immediately comment on the announcements.
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