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Shares of Montvale-based paint maker Benjamin Moore & Co. (OTCBB: MBEN) surged today after billionaire investor Warren Buffett”s Berkshire Hathaway (NYSE: BRKA) yesterday said it has signed a definitive agreement to acquire Benjamin Moore for $1 billion. At the close of trading, Benjamin Moore”s shares were up $12.63 to $37.63. They earlier touched a high of $37.75.

Under the terms of the agreement, a wholly-owned subsidiary of Omaha, Nebraska-based Berkshire Hathaway will make a cash tender offer of $37.82 per share to holders of Benjamin Moore common stock. The offer will commence no later than November 17 and is subject to certain conditions, including the tender of not less than two-thirds of Benjamin Moore”s outstanding common stock, on a fully diluted basis, and the obtaining of all necessary governmental approvals. It will expire 20 business days after it is commenced, but may be extended under certain circumstances.

Upon successful consummation of the transaction, Benjamin Moore will become a wholly owned subsidiary of Berkshire Hathaway and will continue to be headquartered in Montvale.

Benjamin Moore”s board of directors has unanimously approved the agreement. In addition, shareholders who own approximately 18% of Benjamin Moore”s common stock have agreed to tender their shares in favour of the transaction.

The board of directors of Benjamin Moore, a manufacturer and retailer of premium paints, stains and industrial coatings, was advised by J.P. Morgan & Co. Descendants of the Moore brothers (Benjamin and Robert), who founded the company in 1883, have a controlling stake in the company.

Berkshire Hathaway is a holding company owning subsidiaries engaged in a number of diverse business activities. The most important of these is the property and casualty insurance business conducted on both a direct and reinsurance basis through a number of subsidiaries.

HOOVER”S ONLINE: Benjamin Moore & Co.
HOOVER”S ONLINE: Berkshire Hathaway