Dream Finders to buy Beazer Homes in $2.2-billion deal

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.

U.S. homebuilders are ‌navigating rising costs due ‌to persistent inflation, as well as President Donald Trump's tariffs on key construction raw materials.

Besides, weakening consumer sentiment ​is prompting builders to offer incentives like mortgage rate buydowns, which in turn has hurt their margins ⁠further.

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 transaction implies Beazer's equity value ​at about $916 million, according to ‌Reuters' calculation.

Shares of Beazer Homes were down over 1% before the bell.

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 nearly 80% since the offer was announced through the stock's last close.

The ‌company operates across 15 markets in 13 states, offering homes across a range of price ‌points and providing related financing services.

Dream Finders and Beazer ⁠expect the transaction to close ‌in the fourth ​quarter of 2026, subject to customary closing conditions.

(Reporting by Apratim Sarkar in Bengaluru; Editing by Leroy ‌Leo)

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