Dream Finders Homes, Inc. (DFH) has acquired certain assets of privately held Texas homebuilder McGuyer Homebuilders Inc. (MHI) for $471 million in cash at closing, subject to post-closing adjustments. 

McGuyer (MHI) builds homes in Houston, Dallas, Austin and San Antonio under the name Coventry Homes.

Assets acquired include 1,850 home sites, a backlog of 1,845 homes valued at more than $1 billion and 5.500 lots under control. The deal includes MHI’s homebuilding, mortgage banking and title insurance assets, according to a press release.

“MHI has been consistently recognized as one of the nation’s top homebuilders and the company has earned an impeccable reputation over the past 30 years,” said Patrick Zalupski, chairman and CEO of DFH. “We believe we can provide capital and efficiencies to help the current team grow well beyond its 2,000 homes produced annually. We also believe we structured the deal in a highly accretive way for DFH shareholders, allowing us to maintain our asset-light business model and generate industry-leading returns on shareholder capital.”

The majority of the assets acquired are homes under construction, which are anticipated to be delivered immediately after the transaction closes and the next 270 days. 

In the fourth quarter of 2021, DFH expects to acquire MHI’s model home portfolio of 90 units with an estimated retail value of $65 million. 

Following the deal, MHI’S CEO and employees will remain with the combined company and continue to operate the existing and new home communities under the Coventry Homes brand.