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Taylor Morrison to Be Taken Private by Berkshire Hathaway in $6.8 Billion Deal

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Taylor Morrison to Be Taken Private by Berkshire Hathaway in $6.8 Billion Deal

Taylor Morrison Home (TMHC) shares jumped early Monday after the homebuilder agreed to be acquired and taken private by conglomerate Berkshire Hathaway (BRK.A, BRK.B) in an all-cash deal with an equity value of about $6.8 billion.

Berkshire will pay $72.50 per share in cash for Taylor Morrison, representing a premium of roughly 24% to the company's closing price on Friday, the companies said in a joint statement Sunday. Taylor Morrison's stock climbed 20% in the most recent premarket activity.

The deal has an enterprise value of about $8.5 billion, according to the companies.

"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," Taylor Morrison Chief Executive Sheryl Palmer said in a statement.

The deal, which requires approval from Taylor Morrison's shareholders and clearance from regulators, is expected to complete in the second half. Following completion, the homebuilder will continue to be led by Palmer and will no longer trade on the New York stock exchange.

In an emailed client note, Truist Securities said it likes Taylor Morrison's geographic mix and its long-term runway to high-teens return on equity. The brokerage believes the deal "could be coming near cyclical bottoms, barring further macroeconomic deterioration," assuming absorption rates will begin to turn later in 2026 and into the next year.

In April, Taylor Morrison reported first-quarter adjusted earnings of $1.12 a share, down from $2.19 the year before. Overall revenue fell to $1.39 billion for the March quarter from nearly $1.9 billion in the prior-year period. At the time, the company said it expected to close about 11,000 homes for 2026.

"We are excited to welcome Taylor Morrison into Berkshire's portfolio," Berkshire Hathaway CEO Greg Abel said. "Over time, we expect to unify our site-built homebuilding operations into a combined platform."

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