Key Developments: Berkshire Hathaway Inc (BRKa.N)
14 Mar 2014
Latest Key Developments (Source: Significant Developments)
The Lubrizol Corporation, a Berkshire Hathaway Inc announced that it has completed the acquisition of Lipotec SA, is in the development, manufacturing and sale of personal care ingredients based on three core technologies: peptide-based active cosmetic ingredients, delivery systems and biotechnology products. This purchase includes Lipotec`s cosmetic active ingredients business and its subsidiaries, Diverdrugs and Lipofoods. The transaction was announced on June 20, 2012. With the close of this transaction, Lipotec is now part of Lubrizol Advanced Materials, with Lipotec, Diverdrugs and Lipofoods retaining their respective names. The previous owners will continue their activities in the pharmaceutical and cosmetic finished goods segments through BCN Peptides, GP Pharm and Prima-Derm which are not part of the transaction. Financial terms of the agreement were not disclosed. Full Article
Berkshire Hathaway Inc's announced that its subsidiary McLane Company Inc has entered into an agreement to acquire Meadowbrook Meat Company Inc (MBM). MBM, based in Rocky Mount, North Carolina is a customized foodservice distributors for national restaurant chains. MBM will continue to be run in the same prudent and professional manner as it has been for the past 65 years, led by the current executive management team, and operating out of its existing facilities in the same markets. The only change to MBM’s business will be new access to enhanced resources, operational practices and intellectual capital that will provide upside and opportunity for increased levels of success for MBM, McLane and the customers both companies serve. Finanical terms of the transaction were not disclosed. Full Article
Media General, Inc. Completes Sale Of Newspapers To Berkshire Hathaway's World Media Enterprises, Inc.
Media General, Inc. announced that it has completed the previously announced sale of 63 daily and weekly newspapers to World Media Enterprises, Inc., a subsidiary of Berkshire Hathaway, Inc., for $142 million in cash, subject to adjustment for working capital and other items. After transaction fees and the repayment of funds drawn on the revolving credit facility, Media General will use the net proceeds from the newspaper sale to offer to repay on a pro rata basis existing senior secured notes at par and a term loan with no prepayment penalty. Full Article
Berkshire Hathaway Inc's NetJets To Buy Bombardier Inc's, Cessna's Planes Worth $9.6 Billion-Reuters
Reuters reported that NetJets, a private jet-sharing company owned by Warren Buffett's Berkshire Hathaway Inc said it would buy up to 425 new business jets from Bombardier Inc and Cessna in a deal worth $9.6 billion to expand its North American and European fleet. The purchase, which NetJets described as the largest in private aviation history, includes up to 275 Bombardier Challenger business aircraft, the second time in 15 months that NetJets has placed a large order with the Canadian planemaker. The Bombardier portion of the order, which is valued at $7.3 billion, is made up of 100 firm orders on two different types of Challenger jets, and options for 175 more, NetJets said. Deliveries of the different jets will start in 2014 and 2015. "This is a very sizable order," said PI Financial airlines analyst Chris Murray. "Bombardier's aerospace group usually does about $10 billion a year. This will be several years worth of business," he said. NetJets also said in a statement that it placed an order for 150 Cessna Citation Latitude business aircraft, including 25 firm orders and options for 125 more. Deliveries begin in 2016. Cessna Aircraft Co, maker of business jets, is a subsidiary of Textron Inc. "It's a major step towards replacing their existing fleet, but it heavily depends on business jet demand and achieving a level of profitability that's far from guaranteed," said Richard Aboulafia, an aerospace analyst with Teal Group. Full Article
Reuters reported that Berkshire Hathaway Inc has offered to buy Residential Capital LLC's mortgage unit, according to court papers filed Monday. Berkshire Hathaway Inc, Buffett's holding company, is seeking to replace Nationstar Mortgage Holdings owned by Fortress Investment Group as the initial bidder for the bankrupt company's mortgage servicing unit. ResCap, the mortgage unit of Ally Financial Inc filed for bankruptcy in May with a plan to sell the unit to Nationstar for about $2.4 billion. Ally is the former in-house financing arm for General Motors Co previously known as GMAC, and is not in bankruptcy. Berkshire also offered to serve as the stalking-horse bidder for a portfolio of loans that ResCap had planned to sell to Ally for approximately $1.4 billion. The stalking-horse, or initial bidder, sets the minimum price, requiring other bidders at the auction to make higher counteroffers. In both cases, Berkshire said it would offer more attractive terms in papers filed in federal bankruptcy court in Manhattan. Berkshire also topped the proposed bid from Ally, offering $1.45 billion, or $50 million more. Before the bankruptcy filing, Berkshire made a last-minute offer to buy ResCap assets for $1 in return for taking on its liabilities. Ally turned down the offer. Spokeswomen for both Ally and ResCap declined to comment on the Berkshire filing. A spokesman for Fortress did not immediately return a request for comment after business hours Monday. Full Article
Reuters reported that Berkshire Hathaway, Inc. has taken a small stake in Lee Enterprises, Inc. According to an amended 13F filed with the U.S. Securities and Exchange Commission, Berkshire owns about 1.7 million shares of Lee Enterprises, or about 3.2% based on its latest shares outstanding. Full Article
Reuters reported that Berkshire Hathaway, Inc. is eyeing more newspapers, according to a memo posted on Jim Romenesko's media website. The Oracle of Omaha wrote in a memo to Berkshire Hathaway's publishers and editors that Berkshire will probably purchase more papers in the next few years, according to the website. Full Article
Media General, Inc. Announces Agreements With Berkshire Hathaway, Inc.'s BH Media Group For Purchase Of Newspapers
Media General, Inc. announced that it has signed agreements with Berkshire Hathaway, Inc., for the purchase of newspapers and new financing. A subsidiary of Berkshire Hathaway, BH Media Group, will purchase all of the newspapers owned by Media General, with the exception of the Tampa group, for $142 million in cash. Media General said it is in discussions with other prospective buyers for its Tampa print assets. Under a separate credit agreement, Berkshire Hathaway will provide Media General with a $400 million term loan and a $45 million revolving credit line. The new loan will be used to fully repay the Company's existing bank debt due March 2013 and will mature in May 2020. In conjunction with this, Media General will issue Berkshire Hathaway penny warrants for approximately 4.6 million Class A shares, which represents 19.9% of Media General's existing shares outstanding. In addition, Berkshire Hathaway has the option to nominate a director to Media General's Board of Directors. Full Article
NEW YORK - Berkshire Hathaway chairman and chief executive Warren Buffett said on Friday that his firm had eliminated most of its catastrophe insurance business in the United States.