Berkshire Hathaway to buy Taylor Morrison in $6.8bn deal

(Sharecast News) - Berkshire Hathaway has agreed to buy housebuilder Taylor Morrison in a $6.8bn all-cash deal.

In a joint statement on Sunday, the two companies said Berkshire Hathaway will pay $72.50 per common share in cash, which is a 24% premium to Taylor Morrison's last closing price of $58.50 on Friday.

Taylor Morrison chairman and chief executive Sheryl Palmer said: "Joining Berkshire Hathaway is a once-in-a-lifetime opportunity to propel Taylor Morrison into its next, and most exciting, chapter, supported by Berkshire's unmatched capital strength and long-term investment philosophy. This transaction is a testament to the value of Taylor Morrison's talented team members, trusted brand, community-minded development approach, and diversified portfolio.

"Over the last 13 years as a public company, we built a track record of strategic growth- expanding our geographic footprint, integrating acquisitions with discipline, and deepening our competitive strengths across procurement, brand, and customer experience. Berkshire Hathaway's long-term orientation is uniquely well-suited to the multi-year investment cycle of homebuilding, and this combination will allow us to scale the Taylor Morrison platform in ways that would not be possible as a standalone company."

Berkshire Hathaway chief executive Greg Abel - who took over from Warren Buffett at the start of the year - said: "Berkshire is acquiring a best-in-class national homebuilder, led by an exceptional team and backed by a trusted reputation for customer experience.

"We are excited to welcome Taylor Morrison into Berkshire's portfolio, reflecting our long-standing commitment to housing, exemplified by Clayton Homes and our other building products businesses. 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."

The deal is expected to close in the second half of this year.

At 1100 BST, Taylor Morrison shares were up 22% at $71.67 in pre-market trade.