Prime Highlights
- Abel plans to consolidate all Berkshire homebuilding operations into one unified platform.
- Palmer says the deal unlocks growth impossible to achieve as a standalone company.
Key Facts
- Taylor Morrison operates across 12 US states under three distinct housing brands.
- Berkshire’s cash reserves exceeded $380 billion at the close of the first quarter.
Background
Berkshire Hathaway has agreed to acquire national homebuilder Taylor Morrison Home Corp for $6.8 billion in cash, marking the conglomerate’s first major acquisition under new chief executive Greg Abel.
The deal values Taylor Morrison at $72.50 per share, a 24% premium over the company’s most recent closing price of $58.50. The total enterprise value of the transaction stands at $8.5 billion. The purchase is expected to close in the second half of 2026, subject to shareholder and regulatory approvals.
Abel, who took over from Warren Buffett at the start of this year, said Berkshire plans to bring its site-built homebuilding operations together under a single platform to make home buying more accessible for Americans. He described Taylor Morrison as a best-in-class national homebuilder.
Taylor Morrison chief executive Sheryl Palmer said Berkshire’s long-term investment approach suits the multi-year nature of homebuilding and would allow the company to grow in ways it could not achieve independently. After closing the deal, Palmer will continue to lead the company.
Taylor Morrison is one of the top 10 home builders in the US, operating under three names in 12 states. The company said it made a net income of $782.5 million, on revenue that came in at $8.12 billion for 2025.
Berkshire has deep roots in housing, having owned manufactured home builder Clayton Homes since the early 2000s. It also holds building-related businesses, including Acme Brick, Benjamin Moore paint, and Johns Manville insulation.
The acquisition allows Abel to deploy a portion of Berkshire’s cash reserves, which stood at $380.2 billion at the end of the first quarter of this year.
