Berkshire Hathaway Inc. (NYSE: BRK-A) is adding to its portfolio yet again. The firm announced that it has acquired an equity stake in the largest operator of travel centers in North America, Pilot Flying J.
According to the terms of the deal, Berkshire Hathaway will now own a 38.6% minority equity stake in Pilot Flying J, while the Haslam family, which runs the company, will retain a 50.1% stake. However, Berkshire Hathaway will become the majority shareholder in 2023 when the firm will acquire an additional 41.4%, leaving the Haslams with a 20% ownership stake.
Also Pilot Flying J President Ken Parent and the current management team will remain in place and the company will continue to be headquartered in Knoxville, Tennessee.
For some quick background: Pilot Flying J is the largest operator of travel centers in North America, with more than 27,000 team members, 750 locations across the United States and Canada, and more than $20 billion in revenues.
Warren Buffett, board chair, president and chief executive of Berkshire Hathaway, commented:
Pilot Flying J is built on a longstanding tradition of excellence and an unrivaled commitment to serving North America’s drivers. Jimmy Haslam and his team have created an industry leader and a key enabler of the nation’s economy. The Company has a smart growth strategy in place and we look forward to a partnership that supports the trucking industry for years to come.
Jimmy Haslam, CEO of Pilot Flying J, added:
Given the impeccable reputation of Warren Buffett’s Berkshire Hathaway, and our shared vision and values, we decided this was an ideal opportunity. As a family business that has evolved and prospered over the last six decades, we knew that any potential partner would need to share our commitment and have a proven track record as a long-term investor. We have that in Berkshire Hathaway – they believe in our strategy, support our team and are excited to see Pilot Flying J grow. We are honored and humbled to partner with them.
Shares of Berkshire Hathaway were last seen at $278,400.00, with a 52-week range of $213,030.00 to $278,500.00.