Warren Buffett is behind the largest acquisition in Oregon history.
BY JACOB PALMER | DIGITAL NEWS EDITOR
Warren Buffett is behind the largest acquisition in Oregon history.
The magnate’s investment firm, Berkshire Hathaway, finalized a deal for Precision Castparts for $37.2 billion over the weekend.
In a written statement, Buffett said: “I’ve admired PCC’s operation for a long time. For good reasons, it is the supplier of choice for the world’s aerospace industry, one of the largest sources of American exports.”
The companies said they plan to close the deal early next year and retain Precision Castparts’ name and Portland headquarters. Buffett said CEO Mark Donegan will continue to run the business.
The deal isn’t likely to have a huge impact on Oregon’s economy – unlike other big investors, Buffett buys companies because he likes the way they’re run, not to shake them up. Historically, he’s more likely to reinforce and reinvest in an existing strategy than shake up a business.
(SOURCE: OregonLive.com)
The deal means Oregon has lost two Fortune 500 companies in the span of weeks.
Precision’s headquarters will remain in Portland. However, the move means Oregon will lose a Fortune 500 company because Precision will fall under the umbrella of the Warren Buffett company.
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The deal is expected to close during the first quarter of calendar 2016. A majority of PCC’s outstanding shares must approve it.
(SOURCE: Portland Business Journal)
Mark Donegan, PCC chairman and CEO, said in a written 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.
“This transaction offers compelling and immediate value for our shareholders, and allows PCC’s employees to continue to operate in the same manner that has generated many years of exceptional service and performance to our customers.”
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