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Berkshire Hathaway Purchase Includes Valley Companies

Berkshire Hathaway Inc.’s proposed $37.2 billion acquisition of Precision Castparts Corp. will see some 30 Southern California Precision subsidiaries land in Warren Buffett’s portfolio. Among the businesses included in the deal, announced Saturday, are Valencia’s Aerospace Dynamics International Inc., which employs about 625 people; Gardena’s Permaswage Co.; Dickson Testing Co. Inc. in South Gate; Aerocraft Heat Treating Co. Inc. in Paramount; and Klune Industries in North Hollywood. Joe Hixson, a spokesman for Precision, said it was unlikely the subsidiaries and their employees would feel an impact from the deal. “One of the benefits to Berkshire Hathaway is that it’s a partner, and has been a shareholder a long time and likes the way we work,” he said. “Employees can expect business as usual.” According to Hixson, Berkshire Hathaway owned 4.2 million Precision shares, just over 3 percent, as of March 13, making it the seventh-largest shareholder. Buffett has been a shareholder since 2012, he added. Precision Castparts has a market cap of $31.8 billion and employs more than 30,000 people. The company, founded in 1949, makes complex metal parts for the aerospace, power and industrial industries. It also provides melted and milled metals for several industries. As recently as late last month, Precision was on the hunt, buying Covina’s Composites Horizons on July 31 for an undisclosed amount. The company, which employs about 200 people, makes carbon and ceramic parts for aerospace engines.

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