Berkshire Hathaway to Buy Marmon Stake
Berkshire Hathaway, the conglomerate headed by billionaire investor Warren Buffett, said on Tuesday it planned to buy 60 percent of manufacturing and services group Marmon Holdings for $4.5 billion.
For more details, tune in to Squawkbox, 8.45 am ET, Wednesday 26 December. CNBC's Becky Quick talks with Warren Buffett in person about the deal.
Privately held Marmon is an international association of more than 125 businesses in sectors including wire and cable, transportation services and industrial products. Its collective revenues total about $7 billion.
Berkshire Hathaway said it will acquire the remaining 40 percent through staged acquisitions over a five- to six-year period for consideration to be based on Marmon's future earnings.
Prior to closing, Marmon will distribute a "substantial" amount of cash and certain assets to selling shareholders, Berkshire said in a statement.
Marmon is owned by trusts for the benefit of members of the Pritzker family, which is best known for starting the Hyatt hotel chain. Jay and Robert Pritzker bought Marmon in 1953, and Jay's son Tom became chairman in 2002.
"Our transaction was done just the way Jay would have liked it to be done -- no consultants or studies," Buffett said in the statement. The deal is subject to closing conditions, including regulatory approvals.