Dream Finders Homes inked a deal to buy Beazer Homes for about $915 million, following several months of talks.
The homebuilder said Friday that it agreed to acquire Beazer in an all-cash transaction, and would pay $33.50 for each share of the company's common stock.
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The deal values Beazer at about $2.2 billion, including debt, Dream Finders said. The deal has an equity value of about $915 million, based on Beazer's 27.3 million outstanding shares, according to FactSet.
Together, the two companies said they would form the nation's sixth-largest homebuilder, with highly complementary footprints, expanded product offerings and deeper capabilities across large and fast-growing housing markets.
The deal is expected to close in the fourth quarter. At that time, the combined company would operate in 26 markets and approximately 520 active communities across the Southeast, Mid-Atlantic, Texas, the West and the Midwest, the companies said.
Separately, Millrose Properties said Friday that it would provide up to $1.25 billion in acquisition financing to support the deal. Under the arrangement, the company plans to acquire homesites from the combined Dream Finders and Beazer organization.
Dream Finders had been on the hunt for a Beazer buyout this year, first with a proposal at $28.50 a share back in February that it raised to $29 a share in March. After Beazer reported a second-quarter loss in April and its shares slid, Dream Finders made a new proposal at $25.75 a share, which still carried a 40% premium to Beazer's stock price at the time the offer was floated in May.
After Beazer started receiving interest from other parties for a range of potential transactions, Dream Finders then raised its bid to $29.25 per share in June. On June 30, Dream Finders raised its offer again, this time to $32 per share.
Write to Connor Hart at Connor.Hart@wsj.com
