This week, Berkshire Hathaway revealed plans to acquire Precision Castparts Corp (PCC) for a whopping $37.2 billion, amounting to Warren Buffett’s largest deal in history. PCC is a Portland, Oregon-based aerospace supplier, manufacturing various complex structural airframe components and other parts for the aerospace and oil and gas markets.
PCC’s organization is comprised of companies dealing in Investment Cast Products, Airframe Products, and Forged Products, including Wyman-Gordon, Special Metals Corp, and Titanium Metals Corp (TIMET). PCC famously purchased TIMET, a major domestic source of titanium mill products, in 2013 for $2.9 billion.
This deal comes off the heels of the $1.5 billion consolidation of Alcoa and Pittsburgh-based RTI International Metals, a global manufacturer of titanium specialty metal products.
Check out highlights from the press release below, or view the full press release here.
[su_column size=”3/4″ center=”yes”]Berkshire Hathaway Inc. to Acquire Precision Castparts Corp. for $235 Per Share in Cash[/su_column]
[su_column size=”3/4″ center=”yes”]PCC will remain headquartered in Portland, Ore. as a wholly owned subsidiary of Berkshire Hathaway[/su_column]
[su_column size=”3/4″ center=”yes”]OMAHA, Neb. & PORTLAND, Ore. – Aug. 10, 2015 – The boards of directors of Berkshire Hathaway Inc. (NYSE: BRK.A; BRK.B) and Precision Castparts Corp. (“PCC”) (NYSE: PCP) have unanimously approved a definitive agreement for Berkshire Hathaway to acquire, for $235 per share in cash, all outstanding PCC shares. The transaction is valued at approximately $37.2 billion, including outstanding PCC net debt.[/su_column]
[su_column size=”3/4″ center=”yes”]“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. Berkshire’s Board of Directors is proud that PCC will be joining Berkshire,” said Warren E. Buffett, Berkshire Hathaway chairman and chief executive officer.[/su_column]
[su_column size=”3/4″ center=”yes”]“We are very pleased to be joining forces with Berkshire Hathaway,” said Mark Donegan, PCC’s chairman and chief executive officer. “We see a unique alignment between Warren’s management and investment philosophy and how we manage PCC for the long-term. 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.”[/su_column]
[su_column size=”3/4″ center=”yes”]The transaction requires approval by a majority of PCC’s outstanding shares. Closing is expected to occur during the first quarter of calendar 2016, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Act and competition clearance in certain foreign jurisdictions.[/su_column]
[su_column size=”3/4″ center=”yes”]PCC will continue to do business around the world under the Precision Castparts name and maintain its headquarters in Portland, Oregon.[/su_column]
