Berkshire Hathaway Inc. has agreed to pay $2.05 billion for the 20 percent of IMC International Metalworking Cos. that it doesn't already own as Chairman and CEO Warren Buffett expands his bet on the Israeli manufacturer.
“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,” Buffett said Wednesday in a statement.
Buffett has structured deals to buy Marmon Holdings and IMC to allow the selling families to retain a stake in the companies they build. Omaha-based Berkshire can then increase its ownership with the price based on the results after the initial deal. He said in 2006 that he bought 80 percent of Iscar a transaction that valued the company at $5 billion.
“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,” Buffett, 82, said in the statement.