Berkshire Hathaway to acquire homebuilder Taylor Morrison in massive $8.5B deal
Berkshire Hathaway to Acquire Taylor Morrison Home Corp. in $8.5 Billion Deal
Berkshire Hathaway has announced its agreement to acquire Taylor Morrison Home Corp. in an all-cash deal valued at approximately $8.5 billion. This move marks an expansion of Berkshire’s housing business.
Under the terms of the agreement, Berkshire will purchase the homebuilder for $72.50 per common share in cash, valuing Taylor Morrison’s equity at around $6.8 billion. This offer represents a premium of about 24% to the company’s closing stock price of $58.50 on Friday.
This deal highlights Berkshire’s longstanding interest in housing, historically centered around Clayton Homes, which it acquired in 2003.
Greg Abel, Berkshire’s Chief Executive, stated that the acquisition would help expand Berkshire’s footprint into site-built homes, with the potential to combine operations over time.
“We are excited to welcome Taylor Morrison into Berkshire’s portfolio,” Abel said in a statement, emphasizing that the company could help expand access to homeownership.
Taylor Morrison’s Chief Executive, Sheryl Palmer, expressed that the deal would provide the homebuilder with financial backing and a long-term investment horizon aligned with the multi-year nature of housing development.
Taylor Morrison, founded in 2013 as a public company, focuses on residential homebuilding and lifestyle community development, with operations in 12 U.S. states. It currently has a market capitalization of $5.47 billion.
Following the acquisition, Taylor Morrison will continue to operate under its existing management team, including Palmer, and will transition to a privately held company.
The companies anticipate that the deal will close in the second half of this year. Financial advisors Goldman Sachs and Moelis assisted Taylor Morrison in the transaction.
