Insurance
Home›Insurance›Industry & Deals›Berkshire Hathaway completes Taylor Morrison acquisiti…
Berkshire Hathaway completes Taylor Morrison acquisition at $72.50/share
The deal values Taylor Morrison at about $6.8 billion in equity and $8.5 billion on an enterprise-value basis, and it brings an in-house homeowners insurance arm into Berkshire’s housing business.
Berkshire Hathaway has completed its acquisition of homebuilder Taylor Morrison, adding a major site-built housing platform after paying $72.50 per common share in cash. The purchase values Taylor Morrison at about $6.8 billion in equity and $8.5 billion on an enterprise-value basis, according to Insurance Business.
The closing hands Berkshire Taylor Morrison’s in-house homeowners insurance business, even as the companies have not stated how that insurance unit will be integrated with Berkshire’s existing property and casualty insurance and reinsurance operations. Taylor Morrison also provides customers with mortgage, title, and escrow services alongside home sales.
Under the deal terms, Taylor Morrison brands including Esplanade, Yardly, and Taylor Morrison Home Funding will be integrated with Clayton Properties Group, a portfolio of 15 regional and local homebuilders, under continuing CEO Sheryl Palmer. Following the close, Taylor Morrison’s shares were delisted from the NYSE and its SEC reporting obligations were suspended.
Insurance Business notes the offer represented a 24% premium over Taylor Morrison’s May 29 closing price of $58.50. The outlets also say neither Berkshire nor Taylor Morrison has addressed whether Taylor Morrison’s homeowners insurance arm will be folded into, or continue separately from, Berkshire’s insurance subsidiaries.