Warren Buffett's Berkshire Hathaway to acquire rest of IMC for $2.05 bn
02 May 2013
Warren Buffett's investment arm Berkshire Hathaway Inc yesterday said that it would acquire the rest of IMC International Metalworking Cos BV, for $2.05 billion.
Berkshire Hathaway, which already holds 80 per cent in IMC, has offered to buy the remaining 20 per cent from the founding Wertheimer family for $2.05 billion in cash.
Berkshire Hathaway had acquired the stake in 2006 for $5 billion, which was one of the largest takeovers of an Israeli company in the country's history.
Founded by Miriam and Stef Wertheimer in 1952, IMC is one of the world's largest metalworking products group.
Its several companies that include CTMS, Ingersoll, TaeguTec, Tungaloy, UOP S.p.A., Métaldur and others, are organised by industry and by applications to provide a comprehensive range of tools for metalworking applications.
IMC has manufacturing facilities in Israel, the US, Korea, Brazil, China, Germany, India, Italy and Japan, and its products are sold through 140 subsidiaries and agents located in 61 countries worldwide.
''Since the time IMC entered our lives, my partner, Charlie Munger, and I have enjoyed Berkshire's association with the company, the Wertheimer family, and the company's management team," said Buffett, chairman and CEO of Berkshire Hathaway.
''As you can surmise from the price we're paying for the remaining interest, IMC has enjoyed very significant growth over the last seven years, and we are delighted to acquire the portion of the company that was retained by the Wertheimer family when IMC first became a member of the Berkshire group of companies, he added."
"We are very pleased that IMC has found a permanent home in Berkshire Hathaway, which fully appreciates the unique nature of the global Israeli enterprise that we have created, and that is committed to remaining true to that heritage in every way, building on and continuing our historic success and special culture," said Eitan Wertheimer.
"This acquisition cements the everlasting bond between Berkshire Hathaway, one of America's outstanding businesses, and IMC, an extraordinary industrial company with a truly global reach, and a presence in the world's most dynamic regions and economies," said IMC president and CEO Jacob Harpaz.
"We are confident that being part of the Berkshire family will continue to help us strengthen our position worldwide and maintain the phenomenal growth that we have experienced over the past 60 years," he added.
