Berkshire Hathaway, the investment company controlled by eclectic American multibillionaire investor Warren Buffett, will buy Johns Manville, a building products company for $1.9 billion US.

"We are pleased about the opportunity to own a company with such strong market positions, leadership, and financial performance. Johns Manville fits well in the Berkshire family of successful enterprises with global brand recognition," said Berkshire Hathaway chair Warren Buffett in a release.

The $13 US-a-share-offer announced Wednesday is a premium of 21 per cent over Johns Manville's $10.75 US a share closing price Tuesday. The announcement comes just over a month after the company acquired Benjamin Moore Paints for $1 billion US.

Earlier this year, a $2.4 billion US takeover proposal for Johns Manville failed.

The 142-year-old company has 9,700 employees and 55 manufacturing plants in North America, Europe and China. Johns Manville spent much of the 1980s under the protection of Chapter 11 of the U.S. bankruptcy code after a barrage of lawsuits from people suffering from cancer and other ailments caused by asbestos exposure.

The Johns Manville board and the Manville Personal Injury Settlement Trust that was set up to deal with the asbestos-related health claims, have unanimously approved the sale.

"All of us at Johns Manville are pleased to know that Warren Buffett recognizes the long-term value of our company and the consistent performance our people have delivered over the years," said Jerry Henry, Johns Manville chair and CEO in a release.

After the markets opened Wednesday, Johns Manville shares are up almost 20 per cent, or $2.06 US, to $12.81 US and Berkshire Hathaway's shares are down $400 US to $67,500 US.