CINCINNATI and OMAHA, Neb. — Conglomerate Berkshire Hathaway Inc. has agreed to acquire the Duracell battery business from Procter & Gamble Co.
The companies said Thursday that the deal, encompassing roughly $6.5 billion in cash and stock, is expected to close in the second half of 2015 pending regulatory approvals and other customary closing conditions.
"We thank the Duracell employees for their many contributions to the business. They’ve made Duracell the global market leader in the battery category," P&G chairman, president and chief executive officer A.G. Lafley said in a statement. "I’m confident this new ownership structure will provide strong support for Duracell’s future growth plans."
In line with last month’s announcement that it would exit the Duracell business, P&G said it plans to execute a split transaction, in which it will exchange a recapitalized Duracell Co. for Berkshire Hathaway’s shares of P&G stock.
Berkshire’s P&G stock ownership is valued at about $4.7 billion. P&G said it expects to contribute approximately $1.8 billion in cash to Duracell in the pre-transaction recapitalization.
"I have always been impressed by Duracell, as a consumer and as a long-term investor in P&G and Gillette," commented Warren Buffett, CEO of Berkshire Hathaway. "Duracell is a leading global brand with top-quality products, and it will fit well within Berkshire Hathaway."
In August, P&G said it aims to drop as many as 100 brands over the next couple of years to better focus on its most profitable product lines.
