American Homes 4 Rent (AMH) has acquired Beazer Pre-Owned Rental Homes, adding more than 1,300 homes located in markets in Arizona, California, Florida and Nevada to the company's portfolio.
"We are pleased to add these well-located, high-quality homes to our portfolio," said David Singelyn, CEO of American Home 4 Rent. "We expect to move quickly to seamlessly integrate these operations and realize the resulting synergies as we continue to grow our business."
American Homes 4 Rent has been a major driver in the growth of REO-to-rental.
The acquisition was completed through a tax-free merger of Beazer Rental Homes with a newly formed merger subsidiary of the company.
The merger consideration consisted of approximately 8.2 million AMH common shares (subject to adjustment based on reconciliation of the closing working capital acquired) plus up to $5.0 million cash held in an indemnification escrow.
American Homes 4 Rent assumed and repaid certain liabilities of Beazer Rental Homes, including approximately $112.8 million outstanding under Beazer Rental Homes' credit agreement.