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Aug. 10, 2015, 7:28 a.m. EDT

Berkshire Hathaway to buy Precision Castparts for $32 billion

Takeover is biggest ever for Warren Buffett’s conglomerate

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By Chelsey Dulaney


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Warren Buffett, chairman of the board and CEO of Berkshire Hathaway

Warren Buffett’s Berkshire Hathaway Inc. on Monday said it agreed to buy Precision Castparts Corp. for about $32 billion in what would be the conglomerate’s largest takeover ever.

The offer of $235 a share is a 21% premium to Precision’s closing price  of $193.88 a share on Friday. Including debt, the deal is valued at $37.2 billion.

At that size, the deal would rank as Berkshire’s /zigman2/quotes/200060694/composite BRK.B +0.08%  largest ever and represent the latest megamerger in a robust year for deal making.

Precision Castparts stock chart
One-year share price performance

The deal was first reported by The Wall Street Journal on Saturday.

Portland-based Precision Castparts, which had a market value of nearly $27 billion as of Friday’s close, supplies parts such as fasteners and turbine blades to aircraft makers and makes pipes and other equipment for power stations and the oil-and-gas industry.

An expanded version of this report appears at WSJ.com.

/zigman2/quotes/200060694/composite
US : U.S.: NYSE
$ 234.95
+0.19 +0.08%
Volume: 1.87M
Jan. 21, 2021 12:55p
P/E Ratio
15.61
Dividend Yield
N/A
Market Cap
$550.88 billion
Rev. per Employee
$650,360
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