NewsStocksBerkshire Hathaway Completes $6.8 Billion Taylor Morrison Acquisition

Berkshire Hathaway Completes $6.8 Billion Taylor Morrison Acquisition

Author: Coincentral·

Key Takeaways

  • Berkshire Hathaway paid $72.50 per share for Taylor Morrison, representing a 24% premium and valuing the company at $6.8 billion in equity value or $8.5 billion including debt.
  • The acquisition is the first major deal under CEO Greg Abel, who took over from Warren Buffett at the beginning of 2026.
  • Taylor Morrison and Clayton Properties Group together delivered nearly 23,000 site-built homes in 2025, making the combined operation the fourth-largest homebuilder in the United States.
  • Taylor Morrison CEO Sheryl Palmer will remain in leadership and oversee the integration of the company's brands into Berkshire's existing homebuilding operations.
  • Berkshire reportedly invested $16.8 billion over two days under Abel, including $10 billion in Google and $6.8 billion in Taylor Morrison.
Berkshire Hathaway Completes $6.8 Billion Taylor Morrison Acquisition

Berkshire Hathaway closed its acquisition of Taylor Morrison on July 24, paying $72.50 per share in cash for the homebuilder. The transaction values Taylor Morrison at $6.8 billion in equity value and $8.5 billion including debt.

The cash purchase price represented a 24% premium to Taylor Morrison's closing share price on May 29. Taylor Morrison had traded on the New York Stock Exchange under the ticker "TMHC" before the acquisition was completed.

The transaction is the first major acquisition under Greg Abel, who took over as Berkshire Hathaway's CEO from Warren Buffett at the start of 2026. The deal offers an early signal of how Abel intends to deploy Berkshire's capital following Buffett's departure, a question that has drawn significant attention from investors and analysts given the company's nearly $400 billion cash position. Analysts have described the deal as relatively modest in size for Berkshire.

Berkshire Hathaway $BRK.B has now invested $16.8B billion in the last 2 days under new CEO Greg Abel – $10B in Google $GOOGL – $6.8 billion in Taylor Morrison Home $TMHC pic.twitter.com/dmxKtxBXs8 — Evan (@StockMKTNewz) June 2, 2026

Taylor Morrison CEO Sheryl Palmer will remain in charge of the business. She will oversee the integration of Taylor Morrison's brands, including Esplanade, Yardly, and Taylor Morrison Home Funding, into Berkshire's existing homebuilding operations.

Expanded Homebuilding Operations

Taylor Morrison will become part of Berkshire Hathaway's site-built homebuilding operations alongside Clayton Properties Group. Clayton Properties Group is made up of 15 regional and local homebuilders.

Together, Taylor Morrison and Clayton Properties Group delivered nearly 23,000 site-built home closings in 2025. The combined operation spans 21 states, 52 housing markets, and more than 700 communities.

That footprint makes the combined business the fourth-largest homebuilder in the United States. The operation will serve renters, entry-level buyers, move-up buyers, and resort lifestyle communities. The expansion comes amid a persistent national housing supply shortfall that has been documented by industry groups, government agencies, and housing researchers, driving sustained demand for new home construction even as mortgage rates have remained elevated.

Berkshire already had a substantial presence in housing before acquiring Taylor Morrison. The company owns Clayton Homes, Berkshire Hathaway HomeServices — one of the largest residential real estate brokerages in the U.S. — and several building products companies.

Berkshire also owns shares in other homebuilders, including NVR.

Taylor Morrison's Financial Profile

Taylor Morrison had a GF Score of 85 out of 100 before the deal closed, including a profitability rank of 9/10 and a financial strength score of 7/10. Its Altman Z-Score was 3.86, indicating a solid financial position.

The company reported revenue of $7.61 billion and had a market capitalization of approximately $6.67 billion before the transaction was completed. Its price-to-earnings ratio was 10.81, close to its five-year median.

TMHC shares had risen 19.32% over the 12 months before the acquisition was finalized. Over the past year, company insiders made eight sell transactions totaling around $5.46 million, with no insider purchases recorded during that period.

BRK.B stock has gained 4% over the past 12 weeks.