Berkshire Hathaway Buying Pilot Travel Centers
Berkshire Hathaway Buying Pilot Travel Centers
No one saw this deal coming, but Warren Buffet will soon hold a 38.6% stake in
mega truck stop chain Pilot Travel Centers, in a transaction which will see
Berkshire Hathaway possess 80% of the company in 2023.
Pilot Travel Centers is the family-owned operator of travel centers in North
America that fly either the Pilot or Flying J banners and boasts more than $20
billion in revenues; 750 locations and 27,000 employees. Jimmy Haslam, the
current CEO (and Cleveland Browns owner) will remain as CEO as will the existing
management team, and the headquarters will remain in Knoxville, Tenn.
Buffett now has extensive holdings in transportation including major equity in
railroads as well as major airlines such as Delta, Southwest and United
Continental. This is his first foray into petroleum retailing and will no doubt
spark concern that he views that sector as an attractive investment.
No terms were disclosed for the ongoing transaction, nor the price that the
additional 41.4% stake will command some six years from now.
"Pilot Flying J is built on a longstanding tradition of excellence and an
unrivaled commitment to serving North America's drivers," Buffett said in the
news release. "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."
Buffett told reporters that he was aware of the federal investigation into fraud
at the company which has resulted in 14 guilty pleas with four more former
employees set for trial this month.
"I knew about it but it will not affect the future of the company," Buffett
said.
Recent industry buzz has suggested that a Pilot affiliate might soon look to put
together a trading operation in the U.S., or even get into wholesaling rack
barrels at a number of locations.
mega truck stop chain Pilot Travel Centers, in a transaction which will see
Berkshire Hathaway possess 80% of the company in 2023.
Pilot Travel Centers is the family-owned operator of travel centers in North
America that fly either the Pilot or Flying J banners and boasts more than $20
billion in revenues; 750 locations and 27,000 employees. Jimmy Haslam, the
current CEO (and Cleveland Browns owner) will remain as CEO as will the existing
management team, and the headquarters will remain in Knoxville, Tenn.
Buffett now has extensive holdings in transportation including major equity in
railroads as well as major airlines such as Delta, Southwest and United
Continental. This is his first foray into petroleum retailing and will no doubt
spark concern that he views that sector as an attractive investment.
No terms were disclosed for the ongoing transaction, nor the price that the
additional 41.4% stake will command some six years from now.
"Pilot Flying J is built on a longstanding tradition of excellence and an
unrivaled commitment to serving North America's drivers," Buffett said in the
news release. "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."
Buffett told reporters that he was aware of the federal investigation into fraud
at the company which has resulted in 14 guilty pleas with four more former
employees set for trial this month.
"I knew about it but it will not affect the future of the company," Buffett
said.
Recent industry buzz has suggested that a Pilot affiliate might soon look to put
together a trading operation in the U.S., or even get into wholesaling rack
barrels at a number of locations.
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