Goldman Sachs 2007 Annual Report Download - page 27

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We see opportunity
In developing
creative solutions
MARMON HOLDINGS, INC.
The Pritzker Family of Chicago
has been a long-standing client
of Goldman Sachs. Most recently,
they asked us to help analyze
strategic options for Marmon
Holdings, Inc., one of their
significant investments. An
international grouping of more
than 125 manufacturing and
service businesses, Marmon has
achieved impressive growth and
profitability, and is well positioned
to continue that success. Indeed,
part of the family’s objective was
to continue to participate in the
company’s growth.
Rather than recommend a public
auction, Goldman Sachs advised
the Pritzkers that there was one
strategic buyer whose objectives in
the transaction would be a perfect
complement to the Pritzkers’
—
Berkshire Hathaway. Based on
our experience working with
Berkshire Hathaway, we had a
good sense of what its concerns
would be, and were able to
develop a proposal that appealed
to both buyer and seller.
Following the distribution of
substantial cash and other assets
to the selling shareholders,
Berkshire Hathaway will acquire
60% of Marmon for $4.5 billion.
The remaining 40% will be
acquired in stages over the next
five to six years, priced on the basis
of future earnings. In the words of
Tom Pritzker, Marmon’s Chairman,
“Pre-existing relationships infused
the transaction with credibility
and an understanding of the
common ground that allows a
deal to be made . Goldman Sachs
was more than involved
—
they
were committed.”
25Goldman Sachs 2007 Annual Report