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Warren Buffet’s Berkshire Hathaway has agreed to purchase aerospace manufacturer Precision Components Corp for $US 37.2 billion, its biggest acquisition ever.
AFP reports that the famous investor’s half-century-old holding company will pay $US 235 in cash per share, a 21 per cent premium. PCC will continue to be headquartered in Portland, Oregon and will keep its name.
PCC makes precision components for aerospace and industrial uses and achieved revenues and profits of $US 10 billion and $US 1.53 billion for the year ending in March.
"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," said Buffett in a statement.
The BBC reports that a slump in oil and gas prices had been of benefit for Buffett’s acquisition.
Industry Week notes that Buffett's company owns over 100 manufacturing businesses, including the Marmon Group conglomerate, Acme Brick Co., and Lubrizol.
Berkshire had already held 3 per cent of the company’s shares. The deal is subject to approval by regulators and shareholders.