Taylor Morrison (TMHC) Skyrockets 22% on $6.8B Acquisition

Taylor Morrison Home Corp. (NYSE:TMHC) is one of the 10 Stocks Entering June on Fire.

Taylor Morrison snapped a two-day losing streak on Monday, soaring 22.31 percent to finish at $71.55 apiece, following news that Warren Buffett-led Berkshire Hathaway is taking the company private for a total of $6.8 billion.

In a statement on the same day, Taylor Morrison Home Corp. (NYSE:TMHC) said that it officially inked a definitive agreement with Berkshire Hathaway for the sale of all of its shares at a price of $72.50 apiece for a total equity value of $6.8 billion and an enterprise value of $8.5 billion.

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“Joining Berkshire Hathaway is a once-in-a-lifetime opportunity to propel Taylor Morrison into its next, and most exciting, chapter, supported by Berkshire’s unmatched capital strength and long-term investment philosophy,” Taylor Morrison Home Corp. (NYSE:TMHC) Chairman and CEO Sheryl Palmer said.

“Over the last 13 years as a public company, we built a track record of strategic growth—expanding our geographic footprint, integrating acquisitions with discipline, and deepening our competitive strengths across procurement, brand, and customer experience. 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,” she noted.

The transaction is expected to close in the second half of the year, subject to customary closing conditions, including the approval of Taylor Morrison Home Corp.’s (NYSE:TMHC) shareholders. Upon completion, it will cease to trade on the New York Stock Exchange.

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