Just before the start of the company’s analyst meeting this morning, the Procter & Gamble Co. said it has struck a deal with Warren Buffett’s Berkshire Hathaway to acquire the Duracell battery business.
P&G said it plans to execute a split transaction in which it will exchange a recapitalized Duracell business for Berkshire Hathaway’s shares of P&G stock. Berkshire Hathaway’s stock is currently valued at approximately $4.7 billion. P&G said it plans to contribute about $1.8 billion in cash to Duracell in the pre-transaction recapitalization.
During the company’s analyst meeting, which takes place in Cincinnati, P&G chairman, president and chief executive officer A.G. Lafley is expected to discuss strategies to jump start growth and profitability and detail its plans to strengthen the company’s brand portfolio.