Berkshire Hathaway to Buy Clayton Homes

Berkshire Hathaway Inc., the holding company controlled by billionaire Warren Buffett, agreed to buy Clayton Homes Inc., which makes manufactured homes, for about $1.7 billion.

Berkshire Hathaway will pay $12.50 for each share of Clayton, 12% more than Clayton’s closing price of $11.13 on the NYSE. Knoxville, Tenn.-based Clayton will become a unit of Berkshire Hathaway, with its management remaining in place.