Berkshire Hathaway has agreed to purchase Taylor Morrison Home Corp. in an all-cash transaction valued at approximately $8.5 billion. The deal offers Taylor Morrison shareholders $72.50 per share, a premium of around 24% over the company’s recent closing price. This acquisition significantly broadens Berkshire Hathaway’s presence in the homebuilding sector beyond its existing Clayton Homes business.
The deal underscores Berkshire’s strategic push into site-built housing, a move that CEO Greg Abel emphasized as an opportunity to expand access to homeownership and scale operations effectively. Taylor Morrison will remain under its current leadership and operate as a privately held entity once the acquisition closes, which is expected later this year.
Founded in 2013, Taylor Morrison specializes in residential homebuilding and lifestyle community development across a dozen U.S. states. The company’s market capitalization was roughly $5.5 billion before the announcement. Berkshire Hathaway’s long-term investment approach aligns with the typically multi-year cycle of home development, as highlighted by Taylor Morrison’s CEO, who pointed to the financial stability and growth potential the deal brings to the homebuilder.
Financial advisory for Taylor Morrison in this transaction came from Goldman Sachs and Moelis. This acquisition illustrates Berkshire Hathaway’s continued commitment to growing its housing portfolio through targeted, sizable investments in established homebuilders.