<\/p>\n
Berkshire Hathaway will acquire Taylor Morrison Home Corp in an all-cash deal worth about $6.8 billion, the first major purchase under chief executive Greg Abel and a vote of confidence in the US housing market.<\/p>\n
The offer of $72.50 per common share represents a 24% premium to the home builder\u2019s latest closing price on Friday. It\u2019s the largest deal since Berkshire bought Occidental Petroleum Corp.\u2019s petrochemical business in January.<\/p>\n
\u201cWe are excited to welcome Taylor Morrison into Berkshire\u2019s portfolio,\u201d Abel said in a statement Sunday. \u201cOver time, we expect to unify our site-built homebuilding operations into a combined platform enabling us to deliver the dream of homeownership to more Americans.\u201d<\/p>\n
Greg Abel. Image: David Paul Morris\/Bloomberg<\/p>\n
The first multibillion-dollar acquisition under Abel, who took over Berkshire Hathaway after legendary investor Warren Buffett retired last year, comes during a period of underperformance for homebuilder stocks and as mortgage rates hit the highest since August. The Omaha, Nebraska-based firm was sitting on a cash pile that reached $397 billion at the end of the first quarter, its highest level ever.<\/p>\n
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Abel\u2019s comments about unifying Berkshire\u2019s homebuilding operations over time are \u201ca notable departure\u201d from Berkshire\u2019s trademark strategy of letting acquisitions run independently, said Christopher Davis, a partner at Hudson Value Partners. \u201cInvestors will welcome that evolution in approach.\u201d<\/p>\n
While investors have expressed support for Abel\u2019s leadership of the sprawling conglomerate, some have been hoping that a deal could support Berkshire\u2019s shares, which have fallen 5.6% this year. The S&P 500 index has gained 10.7% in the same period.<\/p>\n<\/p>\n
Taylor Morrison is one of the largest community developers and homebuilders in the US and also offers financial services like home loans, titles, escrow and insurance to consumers, according to the statement. The Scottsdale, Arizona-based firm has more than 350 communities across 12 states.<\/p>\n
The existing Taylor Morrison management team, including Chief Executive Officer Sheryl Palmer, will continue to lead the company, according to the statement.<\/p>\n
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This isn\u2019t Berkshire\u2019s first investment in the home-building business. The company also owns Clayton Homes, and owns shares in Lennar Corp. The deal comes at a time when homebuilding in the US has seen declines. New residential construction decreased 2.8% in April, according to government figures released earlier this month. Starts of single-family homes declined 9%, the most since August.<\/p>\n
The deal is expected to close in the second half of this year.<\/p>\n
\u201cOver the last 13 years as a public company, we built a track record of strategic growth\u2014expanding our geographic footprint, integrating acquisitions with discipline, and deepening our competitive strengths,\u201d Taylor Morrison\u2019s Palmer said in Sunday\u2019s statement. \u201cBerkshire Hathaway\u2019s long-term orientation is uniquely well-suited to the multi-year investment cycle of homebuilding.\u201d<\/p>\n
Goldman Sachs Group and Moelis & Co are serving as financial advisers, Simpson Thacher & Bartlett LLP is serving as legal adviser, and Mayer Brown LLP is serving as counsel to Taylor Morrison.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Berkshire #Hathaway #buy #Taylor #Morrison #6.8m<\/p>\n","protected":false},"excerpt":{"rendered":"
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