Warren Buffett-led Berkshire Hathaway (BRK-A) announced it was acquiring a 60 percent stake in Marmon Holdings Inc. for $4.5 billion. Marmon is a privately held manufacturing and services company.
Marmon, which generates approximately $7 billion yearly through a wide variety of 125 businesses, will have the other 40 percent of the company acquired over a period of five to six years, based on the future earnings of the company.
Owners of Marmon are the Pritzker family, mostly known as the founders of the Hyatt hotel chain. It is currently held in trusts for the family.
Concerning the acquisition, Warren Buffett said, "Our transaction was done just the way Jay [Pritzker] would have liked it to be done - no consultants or studies. I am pleased that over the next five to six years, we will be partnering and working ... in continuing to build Marmon."
Before closing, Marmon will distribute some assets and cash to selling shareholders. The deal is subject to usual regulatory approval and closing conditions.
The deal should close some time in the first quarter of 2008.
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