Buffett Acquires Precision Castparts (PCP) in $37.2B Deal

Warren Buffett’s Berkshire Hathaway Inc (BRK.A) this morning announced that it has agreed to buy the maker of equipment for the aerospace and energy industries Precision Castparts Corp (PCP) in a deal valued at $37.2 billion, including debt.

Buffett will pay $235 a share in cash, the companies said Monday in a press release. That’s a 21% premium to PCP’s Friday close of $193.88.

“I’ve admired PCC’s operation for a long time,” Buffett said in a statement. “It is the supplier of choice for the world’s aerospace industry, one of the largest sources of American exports.”

In an interview on CNBC this morning, Buffett said, “All deals seem expensive to me but this one doesn’t. We are certainly paying a very good price.”

The acquisition, the largest ever by Berkshire Hathaway, is expected to close during the first quarter of FY 2016.

News of the deal was first leaked over the weekend by the Wall Street Journal saying the merger could break $30 billion, and that it would be the biggest acquisition in conglomerate’s long deal-making history.

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