Berkshire Hathaway has reached an agreement to purchase Taylor Morrison Home Corp for $6.8 billion in cash, the companies said on Sunday. Under the terms announced, Berkshire will pay $72.50 in cash for each Taylor Morrison share, representing about a 24% premium to Taylor Morrison's closing price of $58.50 on May 29.
When Taylor Morrison's outstanding debt is included, the deal values the Scottsdale, Arizona-based homebuilder at roughly $8.5 billion. The acquisition will add one of the larger U.S. residential builders to Berkshire's existing housing-related businesses, which already include manufactured housing producer Clayton Homes as well as various building products companies.
Taylor Morrison currently operates more than 350 communities across 21 markets in 12 U.S. states. Its product mix spans entry-level homes, move-up housing and resort-style properties. The company also pursues rental development through its Yardly brand and offers a suite of ancillary services that include mortgage origination, title and insurance products.
Taylor Morrison Chief Executive Sheryl Palmer said Berkshire's focus on long-term investment horizons aligns with the homebuilding sector's multi-year investment cycle and will support the company's planned growth. The announcement noted that Taylor Morrison's existing management team, including Palmer, will remain in place after the transaction closes.
The transaction is expected to be completed in the second half of 2026, subject to the approvals of Taylor Morrison shareholders and relevant regulators. Once the deal closes, Taylor Morrison will be taken private and its common shares will stop trading on the New York Stock Exchange.
For Berkshire Hathaway, the deal represents an expansion of its footprint in residential housing, adding a geographically dispersed builder with operations across multiple market segments and integrated services. For Taylor Morrison, the transaction signals a shift from public-company ownership to ownership by a long-term investor.
Key commercial attributes of Taylor Morrison highlighted in the agreement include its scale - more than 350 communities - its presence in 21 markets across 12 states, its multi-segment product offering, and its in-house mortgage, title and insurance capabilities. The buyer will pay $72.50 per share in cash and, including debt, take on a total enterprise valuation of about $8.5 billion.
Deal terms and timeline
- Purchase price: $72.50 per share in cash.
- Implied premium: about 24% to May 29 closing price of $58.50.
- Enterprise value including debt: approximately $8.5 billion.
- Expected close: second half of 2026, subject to shareholder and regulatory approvals.
- Post-close status: Taylor Morrison to become a private company; shares to cease trading on the NYSE.