Beazer Homes, a homebuilder based in Atlanta, is set to expand its homebuilding operations in North and South Carolina thanks to a $29 million deal with Bill Clark Homes, a private homebuilder that operates in the Carolinas.
In the deal, Beazer will acquire more than 450 lots spread across four new home communities in Raleigh, North Carolina and three in Myrtle Beach, South Carolina.
The company currently builds homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia.
According to Beazer, these new communities will be incorporated into the company’s existing operations in Raleigh and Myrtle Beach. The company expects the new communities to contribute to both revenue and adjusted EBITDA in fiscal 2018.
The value of the deal is approximately $29 million and Beazer used available cash to fund the deal.
In a statement, Allan Merrill, president and CEO of Beazer Homes, said that the deal helps solidify the company’s operations in the Carolinas.
“This acquisition allows us to accelerate our growth in two existing markets, with an immediate contribution to both profitability and return on assets and no increase in leverage,” Merrill said. “In addition to adding the new communities, we are pleased to welcome a number of new sales and construction colleagues who will enable us to pursue additional growth in Raleigh and Myrtle Beach in the years ahead.”