BerkshireHathawayto acquire homebuilder Taylor Morrison in massive $8.5B deal
Berkshire Hathaway has agreed to acquire Taylor Morrison Home Corp. in an all-cash deal valued at about $8.5 billion, the companies jointly said on Sunday, marking an expansion of the conglomerate’s housing business.Under the agreement terms, Berkshire will acquire the homebuilder for $72.50 per common share in cash, valuing Taylor Morrison’s equity at around $6.8 billion.The offer represents a premium of about 24% to the company’s closing stock price of $58.50 on Friday.The deal underscores Berkshire’s long-standing interest in housing, historically centered around Clayton Homes, which it acquired in 2003.Berkshire Chief Executive Greg Abel said the acquisition would help broaden Berkshire’s footprint into site-built homes, with potential to combine operations over time.“We are excited to welcome Taylor Morrison into Berkshire’s portfolio,” he said in a statement, adding the company could help expand access to homeownership.Taylor Morrison Chief Executive Sheryl Palmer said the deal would provide the homebuilder with financial backing and a long-term investment horizon aligned with the multi-year nature of housing development.“Berkshire Hathaway’s long-term orientation is uniquely well-suited to the multi-year investment cycle of homebuilding, and this combination will allow us to scale the Taylor Morrison platform in ways that would not be possible as a standalone company,” she said.Taylor Morrison was founded in 2013 as a public company, with its principal business being residential homebuilding and the development of lifestyle communities, with operations in 12 U.S.
states.It has a market capitalization of $5.47 billion, according to LSEG data.Following the acquisition, Taylor Morrison will continue to operate under its existing management team, including Palmer, and will become a privately held company.The companies expect the deal to close in the second half of this year.
Goldman Sachs and Moelis served as financial advis...