In one of the largest corporate acquisitions this year, Warren Buffett’s Berkshire Hathaway company has bought aerospace parts manufacturer Precision Castparts for US$37.2 billion according to The New York Times. This is Buffett’s largest takeover, ever.
Precision Castparts makes metal parts, such as investment castings, forged components and airfoil castings, which are then used in aircraft engines and gas turbines. The company saw $1.5 billion in profit for fiscal year 2015 on sales of $10 billion. Precision Castparts has been in business since 1953, employing more than 30,000 people at 155 plants worldwide.
The deal is subject to shareholder and regulatory approval, and is expected to close in the first quarter of 2016. It will keep its name and maintain its headquarters in Portland, Ore., U.S.