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Pritzker family to sell 60% of Marmon Holdings to Berkshire Hathaway

Marmon Holdings, an international association that is owned by the Pritzker family and made up of more than 125 manufacturing and service businesses with combined revenues of $7 billion, is to sell 60% of its shares to Berkshire Hathaway, the conglomerate owned and managed by billionaire Warren Buffett (pictured), for $4.5 billion.

The remaining 40% will be acquired by Berkshire Hathaway through staged acquisitions over a five to six year period. Prior to closing, Marmon will make a substantial distribution of cash and certain assets to the selling shareholders.

Chairman Tom Pritzker, son of founder Jay, observed, "this transaction is the culmination of a process that began six years ago. We brought John Nichols in as CEO and began rebuilding Marmon's existing lines of business. Berkshire Hathaway's decision recognises the fine work of our management team over this period and the transaction is being done in the context of the previously reported restructuring of our family business interests."

"We have had a very positive experience working with Tom and the leadership of the Pritzker family," said Frank Ptak, who succeeded Nichols as CEO in 2006. "We are very happy that they have been able to structure this transaction in the way that will allow us to continue to grow Marmon. From management's perspective, we are excited and energised by the idea that Warren Buffett is partnering with Tom Pritzker to provide guidance for our future growth."

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