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Financier's company, Berkshire Hathaway, signs merger agreement with paint manufacturer
MONTVALE, N.J. - Berkshire Hathaway, the investment machine of financier Warren Buffett, seems to be revving up to become a force as a supplier of home improvement products.
The Omaha, Neb.-based firm whose wide-ranging interests include stakes in more than 50 companies including Geico Insurance, American Express and Coca-Cola - disclosed on Nov. 8 that it had entered into a definitive merger agreement with Benjamin Moore, the paint manufacturer based here, whose operations include nearly 100 company-owned paint stores that generate annual sales of more than $150 million.
Berkshire Hathaway's launched a $37.82 per share cash tender offer for Benjamin Moore's common stock. If shareholders accept the deal, it would be valued at around $1 billion. The offer represents more than a 50 percent premium over the $25 per share price Benjamin Moore's stock closed at on Nov. 7.
Benjamin Moore's board of directors has approved the merger and shareholders with aggregate ownership of 18 percent of the company's shares agreed to tender their stock.
"The opportunity offers the dual benefit of providing fair value for our shareholders and continuity of the company as a distinct entity," said Yvan Dupuy, Benjamin Moore's president and CEO. "It's terrific news," added Eileen McComb, a Benjamin Moore spokeswoman, in an interview with NHCN. "We are genuinely delighted to be a part of Berkshire Hathaway." McComb said...