Greg Abel makes Berkshire's first major deal as CEO
Berkshire Hathaway acquisition expands housing with Taylor Morrison for $6.8B Greg Abel’s first major deal boosts Berkshire’s ecosystem and cash strength
Greg Abel has completed his first major acquisition as Berkshire Hathaway CEO with a $6.8 billion purchase of homebuilder Taylor Morrison Home. The deal expands Berkshire's presence in housing and fits the company's longrunning strategy of buying businesses that strengthen its broader ecosystem.
Warren Buffett said Abel handled the transaction faster and more smoothly than he would have, and noted that he never spoke with Taylor Morrison's CEO during the process. Berkshire agreed to pay $72.50 per share in cash, a price analysts said looks modest compared with recent homebuilder transactions.
The acquisition also builds on Berkshire's existing housingrelated holdings, including Clayton Homes and other residential construction businesses. Analysts said the deal could support further consolidation in the U.S. homebuilding industry, while still using only a small portion of Berkshire's nearly $400 billion cash reserve.