The boards of directors of Berkshire Hathaway Inc., Omaha, Neb., and Precision Castparts Corp., Portland, Ore., have unanimously approved a definitive agreement for Berkshire Hathaway to acquire all outstanding PCC shares for $235 per share in cash. PCC will remain headquartered in Portland as a wholly owned subsidiary of Berkshire Hathaway, and will continue to do business around the world under the Precision Castparts name. The transaction is valued at approximately $37.2 billion, including outstanding PCC net debt.
“I’ve admired PCC’s operation for a long time,” says Warren E. Buffett, Berkshire Hathaway chairman and chief executive officer. “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.”
“We are very pleased to be joining forces with Berkshire Hathaway,” says 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 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.”
The transaction requires approval by a majority of PCC’s outstanding shares. Closing is expected 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.
Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power, and general industrial markets. PCC is a market leader in manufacturing complex structural investment castings and forged components for aerospace markets, machined airframe components, and highly engineered, critical fasteners for aerospace applications, and in manufacturing airfoil castings for the aerospace and industrial gas turbine markets. PCC also is a leading producer of titanium and nickel superalloy melted and mill products for the aerospace, chemical processing, oil and gas, and pollution control industries, and manufactures extruded seamless pipe, fittings, and forgings for power generation and oil and gas applications.
http://www.precast.com/investors/press_release/?id=666
