Warren Buffet's firm making big bet on aerospace and industrial manufacturer
OMAHA, Neb.—Berkshire Hathaway, the Warren Buffet-controlled conglomerate and holding company, has announced it will acquire diversified manufacturer of complex metal components, Precision Castparts Corp., in what will be the company’s largest acquisition to date. The all-cash deal is for all outstanding shares of PCC, and valued at $37.2 billion, or $235 per share.
“I’ve admired PCC’s operation for a long time. For good reasons, it is the supplier of choice for the world’s aerospace industry, one of the largest sources of American exports,” Buffett, Berkshire Hathaway’s chairman and CEO, said. “Berkshire’s Board of Directors is proud that PCC will be joining Berkshire.”
Berkshire said PCC will remain headquartered in Portland, Ore. and operate as a wholly-owned subsidiary, continuing to do business around the world under the PCC brand name.
“We see a unique alignment between Warren’s management and investment philosophy and how we manage PCC for the long-term,” Mark Donegan, PCC’s chairman and CEO said. “We believe that as part of Berkshire Hathaway, PCC will be exceptionally well-positioned to support our customers’ needs into the future.”
“This transaction offers compelling and immediate value for our shareholders, and allows PCC’s employees to continue to operate in the same manner that has generated many years of exceptional service and performance to our customers,” Donegan added.
The transaction requires approval by a majority of PCC’s outstanding shareholders, and closing is expected to occur during the first quarter of 2016. It is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Act and competition clearance in certain foreign jurisdictions.