Berkshire Hathaway to acquire Precision Castparts Corp

August 12, 2015

The boards of directors of Berkshire Hathaway Inc. and Precision Castparts Corp. (PCC) have unanimously approved a definitive agreement for Berkshire Hathaway to acquire all outstanding PCC shares. The transaction is valued at approximately $37.2 billion including outstanding PCC net debt.

Precision Castparts Corp. is a worldwide manufacturer of complex metal components and products with $10 billion annual sales which include powder production and isothermally forged PM superalloys and PM specialty steels. It serves the aerospace, power and general industrial markets.  

“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,” stated Warren E Buffett, Berkshire Hathaway Chairman and Chief Executive Officer.

“We are very pleased to be joining forces with Berkshire Hathaway,” added 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.”

The transaction requires approval by a majority of PCC’s outstanding shares. Closing is expected to occur during the first quarter of 2016, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Act and competition clearance in certain foreign jurisdictions.

PCC will continue to do business around the world under the Precision Castparts name and maintain its headquarters in Portland, Oregon, USA.

www.berkshirehathaway.com   |  www.precast.com 

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