Berkshire Hathaway buying Precision Castparts

OMAHA, Neb. (AP) - Warren Buffett's biggest acquisition yet - a $32.36 billion buyout of Precision Castparts - will further change the complexion of Berkshire Hathaway and increase the conglomerate's reliance on industrial companies.

The deal announced Monday to acquire the aerospace and industrial company adds to a string of manufacturing acquisitions Berkshire completed in recent years outside of the insurance industry that fueled its growth. The Omaha-based conglomerate already owned more than 80 subsidiaries.

With a company that size, Buffett needs to strike big deals to meaningfully improve profits at Berkshire. As of June 30, the company had $66.6 billion in cash on hand. The universe of big companies that fit Buffett's criteria tend to be manufacturing or industrial firms.

And the 84-year-old Buffett wants to give Berkshire the strongest foundation possible for his investors and whoever eventually succeeds him.

Precision Castparts, based in Portland, Ore., makes components for aircraft, power plants and other industrial uses. It has been hit hard by tumbling crude and natural gas prices, but it appears to have strong long-term prospects.