May 31 (Reuters) - Berkshire Hathaway ( BRK/A ) has

agreed to acquire Taylor Morrison Home Corporation ( TMHC ) in

an all-cash deal valued at about $8.5 billion, the companies

jointly said on Sunday, marking an expansion of the

conglomerate's housing business.

Under the agreement terms, Berkshire will acquire the

homebuilder for $72.50 per common share in cash, valuing Taylor

Morrison's equity at around $6.8 billion. The offer represents a

premium of about 24% to the company's closing stock price of

$58.50 on Friday.

The deal underscores Berkshire's long-standing interest in

housing, historically centered around Clayton Homes, which it

acquired in 2003.

Berkshire Chief Executive Greg Abel said the acquisition

would help broaden Berkshire's footprint into site-built homes,

with potential to combine operations over time.

"We are excited to welcome Taylor Morrison into Berkshire's

portfolio," Abel said in a statement, adding the company could

help expand access to homeownership.

Taylor Morrison Chief Executive Sheryl Palmer said the deal

would provide the homebuilder with financial backing and a

long-term investment horizon aligned with the multi-year nature

of housing development.

"Berkshire Hathaway's ( BRK/A ) 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," Palmer said.

Taylor Morrison was founded in 2013 as a public company,

with its principal business being residential homebuilding and

the development of lifestyle communities, with operations in 12

U.S. states. It has a market capitalization of $5.47 billion,

according to LSEG data.

Following the acquisition, Taylor Morrison will continue to

operate under its existing management team, including Palmer,

and will become a privately held company. Its shares will no

longer trade on the New York Stock Exchange once the transaction

closes.

The companies expect the deal to close in the second half of

2026. Goldman Sachs ( GS ) and Moelis ( MC ) served as financial

advisors to Taylor Morrison on the transaction.