Billionaire Warren Buffett is placing his bets on aerospace parts. His Berkshire Hathaway firm (Omaha, NE, US) is buying Precision Castparts Corp. (PCC), a Portland, OR-based manufacturer of complex metal components and products, for $37.2 billion. In July, PCC announced it would acquire Composites Horizons (CHI, Covina, CA, US) from American Industrial Partners (New York, NY, US).
“I’ve admired PCC’s 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. Berkshire’s Board of Directors is proud that PCC will be joining Berkshire,” said Buffett, Berkshire Hathaway chairman and chief executive officer. Closing is expected to occur during the first quarter of 2016.
PCC will continue to do business around the world under the Precision Castparts name and maintain its headquarters in Portland.
“We are very pleased to be joining forces with Berkshire Hathaway,” said 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 longterm. We believe that as part of Berkshire Hathaway, PCC will be exceptionally wellpositioned 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.”
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