Updated from 6:59 p.m. EST
said Tuesday that it's acquiring a 60% stake in Marmon Holdings, a privately held industrial conglomerate, for $4.5 billion.
Omaha-Neb.-based Berkshire plans to purchase the rest of Marmon in installments over five or six years.
announcing the transaction, the two companies said that between 2002 and 2007 Marmon's operating income more than tripled. During that same period, operating margins increased from 4.9% to 12.4%. Annual revenue is about $7 billion.
The companies expect to complete the deal, which is subject to normal regulatory approval, in the first quarter of 2008.
Marmon is owned by Chicago's Pritzker family. When the family purchased it in 1953, it was a small Ohio manufacturing operation. Today, it is an international conglomerate consisting of 125 businesses spread across a broad range of industries. Its member companies employ about 21,000 people around the globe.
Berkshire Hathaway's Class A shares ended Monday's session up $3,980 at $137,980.
To see Berkshire's publicly traded holdings, check out the Warren Buffett portfolio at Stockpickr.com.