Buffett to land 60% stake in Marmon for $4.5 billion

Dec 26, 2007 | 02:40 PM | Frank Haflich

Marmon/Keystone Corp., one of the largest U.S. distributors of pipe, tubing and specialty bar, is on its way to becoming part of billionaire investor Warren Buffett's portfolio as its parent company has agreed to be acquired by Berkshire Hathaway Inc.

Berkshire Hathaway, Omaha, Neb., has agreed to pay $4.5 billion for 60 percent of privately owned Marmon Holdings Inc., the investment vehicle of Chicago-based investors Jay and Robert Pritzker that has annual sales of about $7 billion and includes more than 125 manufacturing and service units.

The remaining 40 percent of Marmon Holdings will be acquired by Berkshire Hathaway during the next five to six years for "consideration to be based on the future earnings of Marmon," the two companies said.

Buffet's purchase of the initial 60-percent stake is expected to be complete in the first quarter next year. Prior to closing the deal, "Marmon will make a substantial distribution of cash and certain assets to the selling shareholders," the two companies said in a statement.....





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