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Berkshire Hathaway to buy Precision Castparts in record deal

Monday, August 10, 2015 - 01:09

Berkshire Hathaway makes it biggest deal ever in buying aircraft components maker Precision Castparts in a deal valued at $37.2 billion. Shartia Brantley reports.

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Berkshire Hathaway makes it biggest deal ever. Warren Buffett's diversified company will buy aircraft components maker Precision Castparts in a deal valued at $37.2 billion including debt. Berkshire was one of Precision Castparts' largest shareholders with a roughly 3 percent stake in the company. Berkshire's offer of $235 per share is a 21- percent premium to Precision Castparts' closing price of $193.88 Friday. Berkshire's last mega deal was its acquisition of Burlington Northern Santa Fe railroad in 2010. Berkshire Hathaway Chairman and CEO Warren 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." The company will retain its name and headquarters. Shares of Precision Castparts soared in early trading. The deal is expected to close during the first quarter of 2016.

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Berkshire Hathaway to buy Precision Castparts in record deal

Monday, August 10, 2015 - 01:09