With Precision Castparts, US billionaire Warren Buffett has its largest acquisition – The World

A purchase $ 37.2 billion (33.8 billion euros). This is what has just completed the American billionaire Warren Buffett, who offered Monday, August 10 the aerospace supplier Precision Castparts, supplier of aircraft manufacturers Boeing and Airbus. This is the highest price that the businessman of 84 years has ever had to pay to acquire a company via its holding Berkshire Hathaway

Read also:. Fifty years later, the recipe for Warren Buffett to invest has not aged

Parts for aircraft

Founded in 1953, Precision Castparts, located Portland (Oregon), manufactures parts for the aerospace but also energy (pipes and line pipe) and metallic alloys. Its biggest customers are the conglomerate General Electric (GE) and aircraft manufacturers Boeing and Airbus.

She realized during its 2014-2015 session year to March, a turnover of more than 10 billion for a net profit of 1.53 billion. On Wall Street, the deal was hailed as the title jumped by over 19% in early trade Monday. He had lost about 20% since the beginning of the year, indirectly suffering from oil price dip affecting its energy clients.

M. Buffett did so betting that demand for airliners, boosted by the renewal and modernization of airline fleets amid low oil prices will stay strong and sustainable.

“From lollipops to aircraft”

Berskshire Hathaway, the holding company of Mr. Buffet, specializes in the acquisition of well-established companies in a specific market, its asset portfolio will insurance (Geico ) restoring (Dairy Queen), through participations in become popular brands like Coca-Cola, IBM, or the California bank Wells Fargo. Warren Buffett himself had stressed in February by presenting the annual results of Berkshire Hathaway that his activities were “lollipops aircraft” .

The holding company recorded a decrease of 37 % of its net profit in 2 ^th quarter, according to results presented last Friday, due to a decline in the value of its investments and losses in the insurance industry.

Read also: Warren Buffett prolongs the suspense on his estate