Published On: Mon, Aug 10th, 2015

Buffett does his biggest deal ever: $37.2 billion

Even for Warren Buffett, this is a big deal.

Warren Buffett & Carlyle CEO David Rubenstein Discussion At DC Eco Club

Buffett’s Berkshire Hathaway announced Monday it agreed to acquire Precision Castparts for $37.2 billion – the most it has ever paid for a company.

The Wall Street Journal was first reported the potential deal.

Precision Castparts (PCP) makes makes parts for aircraft makers, power companies and other industrial companies. Among its notable customers are General Electric (GE), Boeing (BA) and Airbus.

In previous acquisition In 2009, Berkshire paid $26 billion for the portion of Burlington Northern — now BNSF Railway.

“I’ve admired [The Precision Castparts’] 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, ” Buffett said in a statement.

Berkshire held a 3% stake valued at more than $880 million in the company. The $37 billion includes assumption of Precision Castparts’ debt. Berkshire’s $235 a share price represents a 21% premium.

Berkshire already owns among many the Fruit of the Loom, Dairy Queen , Geico and one Israeli company Iscar.

 

 

 

 

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