Berkshire Hathaway, Warren E. Buffett’s investment company, has agreed the acquisition of Precision Castparts Corp (PCC) for US$235 a share, valuing the deal at around US$32.5 billion.
The acquisition, announced on 10th August, is the biggest ever deal made by the multibillionaire investor. Berkshire Hathaway had a 3% stake in the company, which it started to build three years ago.
Berkshire Hathaway chairman and CEO, Buffett, said: “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.” The transaction requires approval from a majority of PCC’s outstanding shares and is expected to close in Q1 2016.
Precision Castparts is a worldwide, diversified manufacturer of complex metal components, serving the aerospace, power and general industrial markets, which has its headquarters in Portland, Oregan, USA. It generated sales in its 2015 fiscal year of slightly more than US$10 billion. 70% of sales come from aerospace, 17% from power and 13% from general industry and other.
PCC Fastener Products designs and manufactures high performance and strength precision components for critical applications and severe environments. It manufactures fasteners in North and South America, Europe, and Asia. Two thirds of its facilities are in the United States. PCC began building its fastener business through acquisition of SPS Technologies Inc in 2003.
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
Will manages the content strategy across all platforms and is the guardian for the high editorial standards that the Magazine is renowned.
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