Berkshire to buy Precision Castparts in biggest-ever deal

Warren Buffett’s Berkshire Hathaway Inc (BRKa.N) agreed to buy aircraft components maker Precision Castparts Corp (PCP.N) in its biggest deal ever.

Berkshire’s offer of $235 per share is a premium of 21.2 percent to Precision Castparts’ Friday close of $193.88.

The equity portion of the deal is valued at $32.64 billion, according to Reuters calculations based on Precision Castparts outstanding shares as of June 28. The company had long-term debt of $4.78 billion.

The deal is valued at about $37.2 billion, including debt.

Precision Castparts’ shares were trading at $231.56 in premarket trading on Monday.

Berkshire is one of Precision Castparts’ largest shareholders, with a roughly 3 percent stake as of March 31, according to regulatory filings.

The deal, first reported by the Wall Street Journal on Saturday, is Berkshire’s biggest deal since its $26.5 billion takeover of Burlington Northern Santa Fe railroad in 2010.

Precision Castparts will maintain its headquarters in Portland, Oregon, the companies said in a joint statement.

Credit Suisse was financial adviser to Precision Castparts, while Cravath, Swaine & Moore LLP and Stoel Rives LLP were its legal advisers. Berkshire Hathaway’s legal counsel was Munger, Tolles & Olson LLP.