Berkshire Hathaway to Buy Benjamin Moore
Warren Buffett’s Berkshire Hathaway Inc. agreed to buy paint maker Benjamin Moore & Co. for about $1 billion in cash. Berkshire Hathaway will pay $37.82 a share in a tender offer, a 51% premium on Benjamin Moore’s closing price Wednesday. Berkshire Hathaway, based in Omaha, Neb., primarily owns insurance companies. It agreed Nov. 1 to buy CGNU, the largest British insurer and a Lloyd’s of London underwriting unit. Berkshire Hathaway also owns Geico Corp., one of the largest U.S. insurance companies. The companies expect to begin the tender no later than Nov. 17. The offer is subject to certain conditions, including the tender of at least two-thirds of Benjamin Moore’s shares outstanding as well as regulatory approval. Shares of Benjamin Moore, based in Montvale, N.J., fell 50 cents to close at $25 in over-the-counter trading. Berkshire Hathaway Class A shares fell $800 to $64,800 on the NYSE. The transaction was announced after the close of regular U.S. trading.