Berkshire Hathaway agreed to buy Taylor Morrison Home Corp for $6.8 billion in cash, expanding the conglomerate’s housing business in Greg Abel’s first multi-billion-dollar acquisition since replacing Warren Buffett as chief executive.
The transaction announced on Sunday valued Taylor Morrison at $72.50 per share, a 24% premium over the Scottsdale, Arizona-based company’s closing price on Friday. Taylor Morrison’s enterprise value was set at $8.5 billion.
Shares of Taylor Morrison rose more than 22% in Monday trading.
The addition of Taylor Morrison will help Abel spend some of Berkshire’s cash hoard, which ended March at $380.2 billion. Abel also oversees most of Berkshire’s common stock portfolio, led by Apple and including a growing stake in Google parent Alphabet.
Taylor Morrison operates in 12 U.S. states, mostly in the west and south, under the Taylor Morrison, Esplanade and Yardly brands, including entry-level and “resort lifestyle” housing.
Chief Executive Sheryl Palmer would retain her role after the expected closing in the second half of 2026, pending shareholder and regulatory approvals.
CREATING TOP-FIVE HOMEBUILDER
Berkshire owns the Clayton Homes manufactured home builder, which it bought in 2003. Abel said he hopes to create a combined platform for site-built homebuilding, making it easier for Americans to buy homes.
In a research note, UBS analyst John Lovallo said combining Taylor Morrison and Clayton would create a top-five U.S. homebuilder.
He called the takeover “a strong vote of confidence in the mid-long term outlook for the homebuilding industry,” which he said has a shortage of about 7 million homes.
Taylor Morrison would pay Berkshire a $221.6 million fee if the takeover fell apart under various conditions. It posted net income of $782.5 million on revenue of $8.12 billion in 2025.
Other Berkshire units tied to housing include Acme Brick, Benjamin Moore paint, Johns Manville insulation and one of the largest U.S. residential real estate brokerages. Berkshire’s stock portfolio included stakes in home builders Lennar and NVR at the end of March.
ADDING FUEL TO MERGER FIRE
Taylor Morrison ranks No. 6 among Builder magazine’s top 100 home builders. It also provides mortgage financing, as do some Clayton units.
Palmer, in a statement, called Berkshire’s long-term focus “uniquely well-suited to the multi-year investment cycle of homebuilding.”
Other homebuilders have also received takeover bids in 2026, and RBC analyst Mike Dahl wrote that the Taylor Morrison purchase “adds further fuel to the fire of consolidation.”
Taylor Morrison did not respond to requests for additional comment. Berkshire declined additional comment.
In January, Berkshire paid $9.5 billion in cash for Occidental Petroleum’s chemicals business. That transaction was announced last October.
Berkshire owns dozens of other businesses including Geico car insurance, the BNSF railroad, energy and industrial companies, and retail businesses such as Dairy Queen and Fruit of the Loom.
Goldman Sachs, Moelis and the law firms Simpson Thacher & Bartlett and Mayer Brown advised Taylor Morrison on the transaction, the company said.
