Global Fastener News

Buffett’s Berkshire Hathaway Buying Precision Castparts

Buffett’s Berkshire Hathaway Buying Precision Castparts
August 10
00:00 2015

FEATURE

Berkshire Hathaway agreed to acquire Precision Castparts Corp. for $37.2 billion cash, including outstanding PCC net debt. The price equals about $235 per share. 

“I’ve admired PCC’s operation for a long time,” said billionaire investor Warren Buffett, Berkshire Hathaway chairman and CEO. “For good reasons, it is the supplier of choice for the world’s aerospace industry, one of the largest sources of American exports.”

PCC manufactures aerospace fasteners and other products and will continue to do business under the Precision Castparts name and maintain its headquarters in Portland, OR.

“We see a unique alignment between Warren’s management and investment philosophy and how we manage PCC for the long-term,” PCC CEO Mark Donegan stated. “We believe that as part of Berkshire Hathaway, PCC will be exceptionally well-positioned to support our customers’ needs 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 to our customers.”

The transaction, which requires approval by a majority of PCC’s outstanding shares, is expected to close during the first quarter of 2016. 

The last seven years of Precision Castparts’ fastener operation results are available in the FIN Stock Review section of GlobalFastenerNews.com.

For more on Precision Castparts’ fastener operation, FIN subscribers can click here.

From the Fastener History section of GlobalFastenerNews.com:

2011 FIN – Precision Castparts Fastener Products Poised for Growth
PCC’s Fastener Products segment lists 52 facilities worldwide, including 32 in the U.S.

2004 FIN – Precision Castparts Corp. Shopping for More Fastener Firms
Announcement follows PCC acquisition of SPS Technologies.

Related Stories:

• Precision Castparts Reports “Flat” Fastener Sales

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