Berkshire Hathaway is acquiring Taylor Morrison Home, a major U.S. homebuilder, for $6.8 billion (approximately 10.28 trillion won).
According to Bloomberg and other outlets on May 31 (local time), Berkshire announced it would acquire Taylor Morrison for $72.50 per share (approximately 110,000 won) in an all-cash deal. The price represents a 24% control premium over Taylor Morrison's closing price of $58.50 on May 29, the previous trading day. The total enterprise value, including debt, is valued at approximately $8.5 billion (approximately 12.87 trillion won).
The deal marks the first major acquisition under Greg Abel, who took over as Berkshire's chief executive officer following Warren Buffett's retirement.
Taylor Morrison is one of the largest residential community developers and homebuilders in the United States, operating more than 350 residential communities across 12 states. The company also provides financial services including mortgages, title insurance, escrow, and insurance. Current management, including CEO Sheryl Palmer, will continue to lead the company after the acquisition.
"We are pleased to welcome Taylor Morrison into the Berkshire portfolio," Abel said in a statement. "Over the long term, we will consolidate site-built homebuilding businesses into a single integrated platform."
