Stock Markets February 23, 2026

United Homes Shares Plummet After Stanley Martin Announces $221 Million Buyout

All-cash offer of $1.18 per share valued at roughly $221 million sparks nearly 50% premarket decline; transaction slated to close in Q2 2026

By Jordan Park UHG
United Homes Shares Plummet After Stanley Martin Announces $221 Million Buyout
UHG

United Homes Group (NASDAQ:UHG) saw its stock drop 49.6% in premarket trading Monday following announcement that Stanley Martin Homes will acquire the company in an all-cash deal. The transaction values United Homes at an enterprise value of about $221 million and offers shareholders $1.18 per share, a significant discount to the company’s most recent closing price of $2.38. The acquisition is expected to close in the second quarter of 2026, subject to customary closing conditions.

Key Points

  • United Homes shares plunged 49.6% in premarket trading after the acquisition announcement, reflecting immediate investor reaction.
  • The acquisition values United Homes at an enterprise value of approximately $221 million and offers shareholders $1.18 per share in cash, a material discount to the prior close of $2.38.
  • Upon closing, United Homes will become a subsidiary of Stanley Martin and will no longer be publicly traded, affecting the company’s public equity status and shareholders' liquidity.

United Homes Group (NASDAQ:UHG) shares plunged 49.6% in premarket trading Monday after the homebuilder disclosed it had agreed to be acquired by Stanley Martin Homes in an all-cash transaction with an enterprise value of approximately $221 million.

Under the terms of the agreement, holders of United Homes stock will receive $1.18 per share in cash. That per-share consideration represents a steep discount to the company’s closing share price of $2.38 on Friday. The purchase is expected to be finalized in the second quarter of 2026, subject to customary closing conditions.

The proposed deal has been approved by the Mergers & Acquisitions Committee and the Board of Directors of United Homes. Once the transaction is completed, United Homes will become a subsidiary of Stanley Martin Homes and will cease to be a publicly traded company.

Jack Micenko, Chief Executive Officer of United Homes Group, commented on the agreement, saying, "This transaction delivers immediate and certain cash value to our shareholders while aligning United Homes with a highly respected, well-capitalized builder in Stanley Martin." Steve Alloy, Chief Executive Officer of Stanley Martin, said the combination "represents a step forward to deliver new housing at affordable prices to more prospective homebuyers, citing the company’s mission to design and build homes people love at a price they can afford."

Vestra Advisors acted as exclusive financial advisor to the Special Committee of the Board of United Homes Group. Legal counsel to United Homes was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP. Maynard Nexsen is acting as legal counsel to Stanley Martin.

The market reaction was immediate, with the premarket session reflecting investor response to the cash offer and the exit from public markets implied by the takeover. The timeline for closing, described by the companies as the second quarter of 2026, remains conditional on typical regulatory and contractual closing requirements.

Key elements of the transaction are straightforward in their financial and corporate consequences: the all-cash $1.18-per-share payment, the enterprise value near $221 million, approval by United Homes’ governance bodies, and the planned delisting following completion. These details frame the immediate valuation outcome for United Homes shareholders and the structural change to the company’s ownership following the deal.


Summary of transaction facts

  • Acquirer: Stanley Martin Homes.
  • Target: United Homes Group (NASDAQ:UHG).
  • Consideration: $1.18 per share in cash; enterprise value approx. $221 million.
  • Timing: Expected close in Q2 2026, subject to customary closing conditions.

Risks

  • The deal is subject to customary closing conditions, creating uncertainty around the timing and completion of the transaction; this impacts United Homes shareholders and equity market participants.
  • The cash consideration of $1.18 per share is substantially below the recent public market price of $2.38, posing valuation and liquidity risks for current shareholders.
  • The planned transition from a public company to a subsidiary removes ongoing public-market price discovery for United Homes, limiting future transparency for stakeholders in the homebuilding sector.

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