Berkshire Hathaway to Acquire Taylor Morrison for $6.8 Billion at 24% Premium
TMHC•Berkshire Hathaway will acquire Taylor Morrison Home Corporation in an all-cash $6.8 billion deal, offering $72.50 per share, reflecting a 24% premium over Friday’s close. The transaction marks CEO Greg Abel’s first major purchase and unites Berkshire’s homebuilding operations under a combined platform.
1. Deal Structure and Terms
Berkshire Hathaway will acquire Taylor Morrison Home Corporation in an all-cash transaction valued at $6.8 billion. The deal provides $72.50 per share, representing a 24% premium to its prior closing price and ranks as Berkshire’s largest acquisition since early 2026.
2. Strategic Objectives
This marks CEO Greg Abel’s first major acquisition, aiming to consolidate Berkshire’s site-built homebuilding operations alongside Clayton Homes and stakes in other builders. Management expects the combined platform to enhance cross-selling opportunities in home construction and related financial services.
3. Taylor Morrison Profile
Taylor Morrison operates over 350 communities across 12 states and offers home loans, title, escrow, and insurance services. The Scottsdale-based builder is among the largest U.S. community developers, serving markets from entry-level to luxury segments.
4. Market Impact
The deal leverages Berkshire’s $397 billion cash reserve to invest in a housing sector where new residential starts fell 2.8% in April and single-family starts declined 9%. The acquisition could bolster shareholder value amid broader homebuilder underperformance and elevated mortgage rates.
