Berkshire Hathaway $BRK.B agreed to acquire Taylor Morrison Home Corporation in an all-cash deal with a total enterprise value of approximately $8.5 billion, the companies announced Sunday.
The purchase price of $72.50 per share in cash represents a 24% premium over where Taylor Morrison shares closed on May 29, at $58.50. At that price, the equity value of the transaction works out to approximately $6.8 billion. Shares of Taylor Morrison jumped 22% in premarket trading after the announcement.
For Greg Abel, who stepped into Berkshire's CEO role at the beginning of 2026 when Warren Buffett transitioned to chairman, the purchase represents an early test of his dealmaking approach, according to Reuters. Buffett told CNBC that Abel handled the deal without his involvement. "Greg did that faster than I could done it, smoother than I could have done it, and I never talked to the CEO," Buffett told CNBC.
"Berkshire is acquiring a best-in-class national homebuilder, led by an exceptional team and backed by a trusted reputation for customer experience," Abel said in a statement. "Over time, we expect to unify our site-built homebuilding operations into a combined platform enabling us to deliver the dream of homeownership to more Americans."
With a footprint spanning 12 states and 21 markets, Taylor Morrison runs more than 350 communities; its Taylor Morrison and Esplanade brands target buyers ranging from entry-level to resort lifestyle, while the Yardly brand covers rental community development. Rounding out its business, the company offers ancillary financial services including mortgage financing, title, escrow, and homeowners insurance.
Once the deal is finalized, Taylor Morrison will exit public markets, with its shares removed from the New York Stock Exchange as it moves into Berkshire's private portfolio. Sheryl Palmer, who serves as both chairman and CEO, is expected to stay on alongside the rest of the current leadership.
"Berkshire Hathaway's long-term orientation is uniquely well-suited to the multi-year investment cycle of homebuilding," Palmer said in a statement.
Taylor Morrison would join a Berkshire housing portfolio that already encompasses Clayton Homes, various building-products subsidiaries, and Berkshire Hathaway HomeServices, which ranks among the country's largest residential brokerage networks. As of its most recent quarterly filing, Berkshire's equity portfolio also included positions in publicly traded homebuilders Lennar and NVR, according to Reuters.
Completion of the transaction, which requires both Taylor Morrison shareholder approval and standard regulatory sign-offs, is anticipated sometime in the latter half of 2026.