Persimmon's sale of Beazer Partnerships to a management buyout team will be completed by the end of the month.
The buyout offer has been on the table since Persimmon bought Beazer in February, but late interventions from other prospective bidders and haggling over the price caused the deal to be delayed.

The management team is expected to pay less than £5m in total for the business and Beazer's two prefabrication factories. A source close to the deal said: "We're not talking big bucks. They are really paying for the people and their expertise."

A new name for the business will be released when the deal is formally announced.

The source said the sale was expected to be signed in the next couple of weeks, and that the buyout team has been told to have its funding in place, ready for when the deal is signed.

This would also clear the way for Beazer Partnerships' contract with Amphion, a consortium of social landlords, to be re-signed. Uncertainty has surrounded the deal, which is up for renewal on 1 October, as negotiations for the buyout dragged on.

We’re not talking big bucks. They are really paying for the people and their expertise

Source close to the management team

The source said: "The buyout is close, and it must be clarified by the end of the month for the Amphion deal to be finalised, or else the renewal period would have to be extended. The Amphion consortium has been waiting for the final terms of the buyout to be sorted before committing itself."

He added that Amphion wanted a 12-month contract so it could assess the buyout team's performance.

The Amphion contract is for Beazer Partnerships to build 2000 units over four years. So far, more than 300 have been built, with another 470 planned for next year.

The buyout, led by Beazer Partnerships' managing director John Cadwallader, will result in the sale of Beazer's factories in Ipswich and Livingston along with Beazer Partnerships' regional businesses, which are based in Dorking, Bristol and Aldridge.