Precision Castparts deal reinforces Berkshire's transformation
The US$37.2b purchase of aerospace equipment maker underlines Mr Buffett's long-term vision to make his company an industrial giant
New York
WEEKS from his 85th birthday, Warren Buffett is again seeking to reshape Berkshire Hathaway Inc with the next few decades in mind.
In a deal valued at US$37.2 billion, the second-richest man in the US has agreed to buy Precision Castparts Corp, which makes equipment for the aerospace and energy industries.
Mr Buffett's firm will pay US$235 a share in cash, and take on Precision Castparts' net debt, the companies said on Monday in a statement. That's 21 per cent more than Friday's closing price for the Portland, Oregon-based company, which had dropped 17 per cent in 12 months amid the slump in energy prices.
The deal is one of the largest by Mr Buffett, who has been building his Omaha, Nebraska-based firm in recent years with the acquisition of industrial companies such as Iscar Metalworking in 2006 and chemical maker Lubrizol in 2011. It will also help work down…
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