OMAHA, Aug. 10 (UPI) -- Business magnate Warren Buffet's Berkshire Hathaway announced it plans to acquire Precision Castparts Corp. for $37.2 billion in its largest deal yet.
Precision Castparts Corp. (PCC) makes medical prosthetics, aerospace engine parts and aircraft doors, as well as parts for industrial gas turbines. Berkshire Hathaway, headquartered in Omaha, Neb., plans to acquire all outstanding shares of PCC for $235 per share in cash.
"PCC will remain headquartered in Portland, Ore., as a wholly owned subsidiary of Berkshire Hathaway," the companies said in a joint statement.
"I've admired PCC's operation for a long time," Buffett, who serves as Berkshire Hathaway's chairman and CEO, said. "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."
The deal requires approval by a majority of PCC's shareholders and the deal is expected to close sometime during the first quarter of 2016 after customary anti-trust regulatory conditions.
"We are very pleased to be joining forces with Berkshire Hathaway," Mark Donegan, PCC's chairman and chief executive officer, said in a statement. "We see a unique alignment between Warren's management and investment philosophy and how we manage PCC for the long-term. We believe that as part of Berkshire Hathaway, PCC will be exceptionally well-positioned to support our customers' needs into the future."
Berkshire Hathaway's former largest deal was the acquisition of the Burlington Northern Santa Fe railroad in 2009 for about $27 billion.