Berkshire Hathaway has agreed to acquire Taylor Morrison Home Corp. 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,” he 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 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 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.

The companies expect the deal to close in the second half of this year. Goldman Sachs and Moelis  served as financial advisors to Taylor Morrison on the transaction.