Berkshire Hathaway Inc. will acquire Taylor Morrison Home Corp. in an all-cash deal valued at approximately $6.8 billion, the companies announced Sunday. The offer of $72.50 per share represents a 24% premium over Taylor Morrison’s closing price on the previous Friday. The transaction is expected to close in the second half of this year, according to fortune.com.
The acquisition marks the first multibillion-dollar deal under Berkshire Hathaway CEO Greg Abel, who assumed leadership earlier this year following Warren Buffett’s retirement. Berkshire Hathaway, based in Omaha, Nebraska, has accumulated a cash reserve of $397 billion as of the first quarter, its highest ever. Taylor Morrison, headquartered in Scottsdale, Arizona, is among the largest homebuilders and community developers in the US, operating over 350 communities across 12 states. The company also provides financial services such as home loans, title, escrow, and insurance to its customers.
This deal underscores Berkshire Hathaway’s strategy to expand its footprint in the homebuilding sector by integrating Taylor Morrison’s operations with its existing site-built homebuilding businesses. The acquisition comes amid a challenging year for Berkshire’s shares, which have declined 5.6% so far, contrasting with a 10.7% gain in the S&P 500 index. Taylor Morrison’s scale and diversified services position Berkshire to potentially enhance its offerings in the housing market, a key sector of the US economy.
The transaction is anticipated to close in the second half of this year, pending regulatory approvals and customary closing conditions. Greg Abel expressed optimism about unifying the homebuilding operations to increase homeownership opportunities across the country, signaling a strategic priority for Berkshire Hathaway under his leadership, per fortune.com.