Berkshire Hathaway to buy Taylor Morrison for $6.8 billion to expand housing business
Synopsis
Berkshire Hathaway will acquire homebuilder Taylor Morrison in a $6.8 billion cash deal, strengthening its position in the US housing market and marking a major acquisition under CEO Greg Abel.
Berkshire Hathaway has agreed to acquire Taylor Morrison Home Corp in a $6.8 billion all-cash transaction, expanding its presence in the US housing market and marking the first major acquisition under Chief Executive Officer Greg Abel. The deal strengthens Berkshire's long-standing involvement in residential construction and housing-related businesses while putting a portion of its sizeable cash reserves to work.
Key highlights
- Berkshire Hathaway will acquire Taylor Morrison for $6.8 billion in cash
- Shareholders will receive $72.50 per share, a 24% premium
- The deal marks Berkshire's first major acquisition under CEO Greg Abel
- Taylor Morrison operates across 12 US states
- The transaction is expected to close in the second half of 2026
What happened?
Berkshire Hathaway announced on Sunday that it will acquire Taylor Morrison for $72.50 per share in cash.
The offer represents a 24% premium to Taylor Morrison's closing share price of $58.50 on Friday.
The companies said the transaction carries an enterprise value of approximately $8.5 billion.
Taylor Morrison generated net income of $782.5 million on revenue of $8.12 billion in 2025.
The acquisition is Berkshire's first multi-billion-dollar deal since Greg Abel succeeded Warren Buffett as chief executive at the beginning of 2026. Buffett remains chairman of the company.
Why this matters
The transaction further expands Berkshire Hathaway's footprint across the US housing sector.
The conglomerate already owns a wide range of housing-related businesses, including manufactured home builder Clayton Homes, residential brokerage operations and building products companies.
The acquisition also highlights Berkshire's willingness to deploy part of its cash stockpile, which stood at $380.2 billion at the end of March.
Industry observers will view the deal as an early indication of Abel's acquisition strategy as Berkshire's new chief executive.
Official statements
Greg Abel described Taylor Morrison as a leading player in the homebuilding industry and outlined plans to integrate operations across Berkshire's housing businesses.
"We expect to unify our site-built homebuilding operations into a combined platform."
He added that the move would help simplify the home-buying process for consumers.
Taylor Morrison Chief Executive Officer Sheryl Palmer said Berkshire's long-term investment approach aligns well with the housing sector.
"Berkshire's long-term focus is uniquely well-suited to the multi-year investment cycle of homebuilding."
Palmer said the acquisition would allow Taylor Morrison to expand its platform beyond what would be possible as an independent company.
Background & Context
Berkshire Hathaway has maintained major exposure to the housing market for decades.
The company acquired Clayton Homes in 2003 and owns several building products businesses, including:
- Acme Brick
- Benjamin Moore
- Johns Manville
Berkshire also operates one of the largest residential real estate brokerage businesses in the United States.
In addition, the company's investment portfolio included stakes in homebuilders Lennar and NVR at the end of March.
Taylor Morrison operates in 12 US states through its Taylor Morrison, Esplanade and Yardly brands, serving a range of housing segments from entry-level buyers to lifestyle-focused communities.
The company also provides mortgage financing services.
What happens next?
The acquisition is expected to close during the second half of 2026, subject to shareholder approval and regulatory clearances.
Sheryl Palmer will remain chief executive following completion of the transaction.
Once finalised, Berkshire plans to incorporate Taylor Morrison into a broader housing platform alongside its existing residential construction and housing-related businesses.
FAQs
Q1: How much is Berkshire Hathaway paying for Taylor Morrison?
Berkshire Hathaway is paying $6.8 billion in cash, or $72.50 per share.
Q2: Why is Berkshire buying Taylor Morrison?
The acquisition expands Berkshire's housing business and strengthens its presence in residential construction and homebuilding.
Q3: Who leads Berkshire Hathaway now?
Greg Abel became Berkshire Hathaway's chief executive officer at the start of 2026, succeeding Warren Buffett in the role.
Q4: What does Taylor Morrison do?
Taylor Morrison is a US homebuilder operating in 12 states through the Taylor Morrison, Esplanade and Yardly brands. The company also offers mortgage financing services.
Q5: When is the deal expected to close?
The companies expect the transaction to close in the second half of 2026, pending shareholder and regulatory approvals.
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