Key facts
- Greg Abel, successor to Warren Buffett as Berkshire Hathaway CEO, has completed his first acquisition.
- Berkshire Hathaway acquired Taylor Morrison, a major land developer and homebuilder, for $8.5 billion in cash.
- Taylor Morrison reported approximately $1 billion in pre-tax profits on $8 billion in revenue last year.
- The acquisition integrates Taylor Morrison's brands into Berkshire's existing homebuilding operations under Clayton Properties Group.
- Buffett indicated Abel's swift execution of the Taylor Morrison deal.
- Berkshire Hathaway also recently built a significant stake in Alphabet and acquired OxyChem.
Greg Abel, who succeeded Warren Buffett as CEO of Berkshire Hathaway at the start of the year, has completed his first major acquisition by taking over homebuilder Taylor Morrison for $8.5 billion in cash. The deal, initially announced in late May, signifies Abel's readiness to actively deploy Berkshire's substantial capital.
Taylor Morrison, a leading national land developer and homebuilder, generated approximately $1 billion in pre-tax profits on $8 billion in revenue last year. Its integration into Berkshire's portfolio, which includes Berkshire Hathaway HomeServices and building-product businesses like Clayton Homes, aims to leverage scale to address the American housing affordability crisis. Abel expressed a vision to unify site-built homebuilding operations to facilitate homeownership.
Buffett has lauded Abel's swift execution of the Taylor Morrison deal, noting it was completed faster and smoother than he might have managed. This acquisition comes as Berkshire's cash pile has grown significantly, reaching $380 billion. Buffett has recently been more active in deploying capital, including taking a substantial stake in Alphabet and acquiring OxyChem from Occidental Petroleum.
Abel has also involved key Berkshire executives in the acquisition process, including general counsel Michael O'Sullivan and future finance chief Charles Chang, who briefly served as interim directors of the acquisition vehicle. These moves suggest Abel is actively shaping Berkshire's future direction.