American conglomerate Berkshire Hathaway has agreed to acquire aircraft components maker Precision Castparts (PCC) for around $37.2bn.

US-based PCC manufactures large, complex structural investment castings, airfoil castings, forged components, aero-structures and highly engineered, critical fasteners for aerospace applications.

Last year, the company recorded revenues of $10bn with a pre-tax operating income of $2.6bn. Around 70% of its sales were generated from the aerospace segment.

"We see a unique alignment between Warren’s management and investment philosophy and how we manage PCC for the long-term."

Under the deal, Berkshire Hathaway will pay $235 in cash for each PCC share.

Berkshire Hathaway chairman and CEO Warren Buffett said: "I’ve admired PCC’s operation for a long time.

"For good reasons, it is the supplier of choice for the world’s aerospace industry, one of the largest sources of American exports."

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Subject to customary closing conditions such as regulatory approvals, the transaction is expected to be completed during the first quarter of 2016.

Following the deal, PCC will continue to operate from its headquarters in Portland, Oregon, and carry out operations under the Precision Castparts name.

PCC chairman and CEO Mark Donegan said: "We see a unique alignment between Warren’s management and investment philosophy and how we manage PCC for the long-term.

"We believe that as part of Berkshire Hathaway, PCC will be exceptionally well-positioned to support our customers’ needs into the future."

In recent months, PCC has pursued a series of acquisitions, including the purchase of Composites Horizons (CHI) from American Industrial Partners, and Noranco from MidOcean Partners and PSP Investments.