Part of the bacABCDEFG operon responsible for the biosynthesis of bacilysin, an irreversible inactivator of the glutaminase domain of glucosamine synthetase. Catalyzes the dehydrogenation of the C7-hydroxyl group in the 4S-tetrahydrotyrosine (4S-H4Tyr) to yield anticapsin (epoxycyclohexanonyl-Ala). It is not able to oxidize the 4R-H4Tyr diastereomer and the dihydrobacilysin dipeptide (L-Ala-4S-H4Tyr dipeptide). L-dihydroanticapsin + NAD(+) = H(+) + L-anticapsin + NADH Antibiotic biosynthesis; bacilysin biosynthesis. The compound guanosine 5'-diphosphate 3'-diphosphate (ppGpp) is essential for the transcription of the bacABCDE operon and GTP regulates the transcription of both this operon and ywfH via the CodY-mediated regulation system. Cells lacking this gene show an accumulation of dihydroanticapsin and dihydrobacilysin. Belongs to the short-chain dehydrogenases/reductases (SDR) family. Extended N-terminus.