Berkshire Hathaway, the conglomerate owned by billionaire Warren Buffett, announced on Monday plans to acquire Precision Castparts, a maker of aircraft equipment, in an all-cash deal valued at approximately $37.2 billion, including debt.
The deal initially had been reported by The Wall Street Journal, citing unnamed sources.
Berkshire’s offer of $235 per share is a premium of 21.2 percent to Precision’s Friday close of $193.88. Berkshire already owned 3 percent of the company, and is its largest shareholder.
Founded in 1949, Portland–based Precision makes components such as fasteners and turbine blades for aircraft companies including Airbus and Boeing, and has annual sales of $10 billion. It also makes equipment for power stations and the oil-and-gas industry.
Berkshire said on Friday second-quarter profit fell 37 percent, reflecting a significant decline in investment gains and an underwriting loss from insurance.
—CNBC’s Javier David and Reuters contributed to this report.