The Cincinnatti-based consumer products conglomerate said it will recapitalize Duracell with about $1.8 billion in cash prior to handing over ownership of the business.
In exchange for the world's largest battery brand, P&G will receive Berkshire Hathaway's stake in the seller worth approximately $4.7 billion.
The transaction is expected to close in the second half of 2015.
The $3 billion valuation works out to be about 7 times the Ebitda Duracell is expected to generate in fiscal 2014, P&G said, which would be close to $430 million.
The household and personal care giant said the deal was structured to be "tax efficient."
P&G has been savvy in past years when it comes to minimizing taxes tied to culling its portfolio, with tax-free reverse Morris Trust spin-offs of Folgers coffee, Jif peanut butter and Crisco vegetable shortening and oil to Orville, Ohio-based jelly and jam maker J.M. Smucker Co. (SJM) in separate transactions, for example.
P&G also revealed on Thursday that it closed the sale of its interest in a battery joint venture based in China earlier in the week.
"We have the right strategic priorities, and we're making good progress against all elements," said A.G. Lafley, P&G's CEO, in a statement.