Thomas Lewis • 37 Comments
Wed, Jan. 6, 7:30 AM
- The European Commission has approved Berkshire Hathaway's (BRK.A; BRK.B) planned $32.3B purchase of Precision Castparts (NYSE:PCP).
- The Commission said in a statement that the proposed acquisition would not raise competition concerns given the absence of horizontal overlaps and the limited vertical relationships between the activities of the two companies.
Aug. 10, 2015, 11:28 AM
- Berkshire Hathaway's (BRK.A -0.7%; BRK.B -0.6%) $37B purchase of Precision Castparts (PCP +19.1%), combined with Berkshire's FQ2 earnings report that showed profit fell 37% due to higher costs at its insurance units, appear to be striking an off note with the company's investors, sending shares lower.
- It's the biggest deal of Warren Buffett's career: BRK is paying $235/share for PCP, a 21.2% premium over Friday's closing price and 18x projected profit over a 12-month period.
- "I'm not crazy about paying $30B for a $1.5B earnings stream of a cyclical company supplying airplane makers," says Jeff Matthews, a principal at hedge fund Ram Partners and author of a book about Buffett.
- Buffett tells CNBC that Berkshire will use $23B of its own cash and borrow ~$10B to fund the deal, which he says will be the last one his firm undertakes for roughly a year as it rebuilds its cash pile.
Aug. 9, 2015, 7:54 AM
- Berkshire Hathaway (BRK.A, BRK.B) is nearing an agreement to buy Precision Castparts (NYSE:PCP), in what could be the conglomerate's largest acquisition ever.
- Given typical premiums, the price tag for the industrial firm, which had a market value of $26.7B as of Friday's close, could exceed $30B.
- Berkshire already owns 3% of PCP, and is its largest shareholder. A deal may be announced as soon as this week.
Jul. 27, 2015, 8:38 AM
- Precision Castparts (NYSE:PCP) agrees to acquire the Noranco business from MidOcean Partners and PSP Investments for $560M.
- PCP says the Noranco addition strengthens its position in airframe products, and the unit's engine, landing gear and machining capability will expand its product offering on current and next generation aircraft.
- PCP says Noranco's largest customers include Honeywell, Safran, Bombardier and Spirit AeroSystems.
Mar. 20, 2014, 8:20 AM
- Precision Castparts (PCP) agrees to acquire Aerospace Dynamics International, a supplier in the aerospace industry operating a wide range of high-speed machining centers, from The Marvin Group for $625M.
- PCP says the cash acquisition, which will be treated as the acquisition of assets for tax purposes, will be immediately accretive to earnings.
Nov. 12, 2012, 2:48 PM
The Precision Castparts (PCP +4.5%) deal to acquire Titanium Metals (TIE +42.4%) has a “go shop" provision, allowing a TIE committee to solicit higher bids for 45 days, but D.A. Davidson sees the deal going through, believing the timing of the deal is driven by uncertainty about capital gains taxes in 2013, with "every incentive to get it done before the year end."| Nov. 12, 2012, 2:48 PM
Nov. 12, 2012, 8:46 AM
Titanium Metals (TIE) +43% premarket on Friday's news that it agreed to be acquired by Precision Castparts (PCP) for $16.50/share, a 43% premium to the metal products company's Friday closing price. Since PCP was TIE's biggest customer, cost reductions from the deal should be significant, analysts say, and PCP has shown an ability to integrate acquisitions smoothly. PCP +4.2%.| Nov. 12, 2012, 8:46 AM
Nov. 9, 2012, 4:22 PM
Jul. 17, 2012, 10:00 AM
Precision Castparts (PCP +0.6%) agrees to acquire the aerostructure and industrial products ops of Canada's Heroux-Devtek for C$300M ($295.32M). Precision, which provides metal parts for aircraft engines and power plant turbines, says the transaction will boost its relationships with the likes of Lockheed Martin and Bombardier. (PR)| Jul. 17, 2012, 10:00 AM
Jul. 2, 2012, 3:43 PM
Precision Castparts (PCP +0.7%) holds on to small gains after announcing late yesterday it was acquiring Klune Industries,a manufacturer of complex aluminum, nickel, titanium, and steel aerostructures. Financial terms were not disclosed.| Jul. 2, 2012, 3:43 PM | 1 Comment
Jul. 10, 2011, 5:50 PM