Aug 7 (Reuters) – Dream Finders Homes said on Friday it would acquire peer Beazer Homes in an all-cash deal worth about $2.2 billion, including debt, as it looks to scale up and become the sixth-largest U.S. homebuilder in a challenging housing market.
The acquisition comes as the industry faces demand pressures from elevated mortgage rates, affordability concerns and economic uncertainty, prompting companies to seek scale and efficiencies through consolidation.
Under the agreement, Beazer shareholders will receive $33.50 in cash for each share they own. It represents a premium of 0.12% from Beazer’s last close.
The agreement marks an end to a months-long saga between the two companies. In May, Dream Finders Homes had offered to acquire its peer for about $704 million, or $25.75 per share, but Beazer’s board had rejected the proposal, saying it significantly undervalued the company.
Beazer’s shares have soared 77% since the offer was announced through the stock’s last close.
Beazer Homes operates across 15 markets in 13 states, offering homes across a range of price points and providing related financing services.
(Reporting by Apratim Sarkar in Bengaluru; Editing by Leroy Leo)
