Berkshire To Buy 80% Of Israeli Metals Co
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Berkshire Hathaway Inc. (BRKA, BRKB), the investment vehicle run by billionaire Warren Buffett, on Friday said it will acquire an 80% stake in Iscar Metalworking Cos., valuing the Israeli company at $5 billion.
The announcement to acquire the closely held group may put to rest speculation that Buffett might announce another acquisition during the company's annual meeting on Saturday. Berkshire Hathaway said Iscar will be managed by its current team, including members of the Wertheimer family that will still own the remaining 20% stake.
Iscar operates in the metal-cutting tools business through its world-wide facilities, the largest located in Tefen, Israel.
The transaction remains subject to customary closing conditions, including regulatory approvals.
"We are delighted to partner with the Wertheimer family and IMC's current management, led by Eitan Wertheimer and Jacob Harpaz," Buffett said in a statement. "As a truly international business, IMC is a top performer in its industry, with exposure to European, Asian and Latin American markets, as well as significant opportunities for growth as it continues to penetrate the North American market."
Iscar will retain its current management, including Chairman Eitan Wertheimer and President and Chief Executive Jacob Harpaz, as well as the rest of its current world-wide management. It will remain headquartered in Tefen, Israel.
Iscar operates metal-cutting tools businesses through its Iscar, TaeguTec, Ingersoll and other group companies.
Speculation had been growing over a new acquisition for Berkshire, given its cash pile of $45 billion. Earlier speculation had included San Francisco utility PG&E Corp. (PCG) and Mercury General Corp. (MCY), a Los Angeles-based insurer.
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(END) Dow Jones Newswires
May 05, 2006 18:02 ET (22:02 GMT)
Copyright (c) 2006 Dow Jones & Company, Inc.- - 06 02 PM EDT 05-05-06 |
