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American Homes 4 Rent Acquires Beazer Pre-Owned Rental Homes

Deal Adds 1,300 Homes to SFR Portfolio
July 1, 2014
American Homes 4 Rent acquired Beazer Pre-Owned Rental Homes Inc. The acquisition adds 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 P. Singelyn, CEO of American Homes 4 Rent. "We expect to move quickly to seamlessly integrate these operations and realize the resulting synergies as we continue to grow our business."

The acquisition was completed through a tax-free merger of Beazer Rental Homes with a newly formed merger subsidiary of American Homes 4 Rent. The merger consideration consisted of approximately 8.2 million American Homes 4 Rent common shares (valued at about $146 million) plus up to $5 million cash held in an indemnification escrow.

In addition, following the acquisition, American Homes 4 Rent assumed and repaid certain liabilities of Beazer Rental Homes, including $112.8 million outstanding under Beazer Rental Homes' credit agreement.

Beazer Homes began acquiring and leasing previously-owned homes in 2011. In 2012, the company formed BPRH and contributed its pre-owned home inventory, consisting of nearly 200 single-family homes, at cost, and raised more than $100 million from an investor group led and arranged by KKR Capital Markets LLC. Since that time, BPRH grew to more than 1,300 homes.

“We are pleased to have joined forces with American Homes 4 Rent, and become shareholders in the single family rental homes’ industry leader,” said Allan Merrill, president and CEO of Beazer Homes. “

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