Buy Mode

Washington, Dec. 26 (Reuters): Berkshire Hathaway Inc, the conglomerate headed by billionaire investor Warren Buffett, said on Tuesday it planned to buy 60 per cent of manufacturing and services group Marmon Holdings Inc. for $4.5 billion.

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 would acquire the remaining 40 per cent 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.