Profile: Leucadia National Corp (LUK)
22 May 2013
Leucadia National Corporation, incorporated on May 24, 1968, is a diversified holding company. Leucadia’s largest business is Jefferies, a global, full service investment banking firm. Leucadia also owns and holds investments in a range of other businesses, including beef processing, manufacturing, telecommunications, gaming, real estate, and energy.
The Company’s manufacturing operations are conducted through Idaho Timber, LLC (Idaho Timber) and Conwed Plastics, LLC (Conwed Plastics). Idaho Timber primarily remanufactures dimension lumber and remanufactures, packages and/or produces other specialized wood products. Conwed Plastics manufactures and markets lightweight plastic netting used for a range of purposes, including among other things, building and construction, erosion control, packaging, agricultural, carpet padding, filtration and consumer products. The Company’s gaming entertainment operations are conducted through Premier Entertainment Biloxi LLC (Premier), which is the owner of the Hard Rock Hotel & Casino Biloxi (Hard Rock Biloxi), located in Biloxi, Mississippi. The Company owns a 50% equity interest in Berkadia Commercial Mortgage LLC (Berkadia), a joint venture with Berkshire Hathaway Inc. (Berkshire Hathaway). Berkadia is engaged in the commercial mortgage origination and servicing business.
National Beef is a beef processing companies in the United States. National Beef processes, packages and delivers fresh and frozen beef and beef by-products for sale to customers in the United States and international markets. National Beef’s products include boxed beef, ground beef, hides, tallow, and other beef and beef by-products. Beef production, from the birth of the animal through the delivery of beef products to the customer, is consists of two primary segments, production and processing. The production segment raises cattle for slaughter and the processing segment slaughters cattle and packages beef for delivery to customers.
As of December 31, 2012, approximately 91% of National Beef’s revenues are generated from the sale of fresh beef. In addition, National Beef sells beef by-products to the variety meat, feed processing, fertilizer and pet food industries. National Beef also owns 75% of Kansas City Steak Company, LLC (Kansas City Steak), which sells portioned beef and other products to customers in the food service and retail channels, as well as direct to consumers through the Internet and direct mail. National Beef operates a wet blue tanning facility that sells processed hides to tanners that produce finished leather for the automotive, luxury goods, apparel and furniture industries.
Idaho Timber is engaged in the manufacture and/or distribution of various wood products. Idaho Timber’s principal product lines include remanufacturing dimension lumber; remanufacturing, bundling and bar coding of home center boards for retailers and production of 5/4 inches radius-edge, pine decking. Dimension lumber is used for general construction and home improvement, remodeling and repair projects. Home center board products are principally sold to home improvement retailers. Idaho Timber owns and operates seven plants, one sawmills that principally produces decking products and one sawmills that produces split-rail fencing.
Through Conwed Plastics, the Company manufactures and markets lightweight plastic netting used for a variety of purposes including, among other things, building and construction, erosion control, packaging, agricultural, carpet padding, filtration and consumer products. These products are primarily used for containment purposes, reinforcement of other products, packaging for produce and meats, various types of filtration and erosion prevention.
Premier owns the Hard Rock Hotel & Casino Biloxi, located in Biloxi, Mississippi. The Hard Rock Hotel & Casino is located on a 10 acre site on the Mississippi Gulf Coast and has approximately 1,344 slot machines, 50 table games, four live poker tables, five restaurants (including a Hard Rock Cafe and Ruth’s Chris Steakhouse), a full service spa, an outdoor pool and deck, retail space, an eleven-story hotel with 325 rooms and suites and a Hard Rock Live! entertainment venue with a capacity of approximately 2,000 persons.
Domestic Real Estate
The domestic real estate operations include a mixture of commercial properties, residential land development projects and other unimproved land. As of December 31, 2012 include mixed-use development project located in Panama City, a substantially developed mixed-use development project with various residential, retail and commercial space located in Myrtle Beach, South Carolina; approximately 73 acres of land used by Garcadia, approximately 76 acres of land located on the island of Islesboro, Maine and 45 fully developed residential lots on approximately 120 acres of land located in Rockport, Maine on Penobscot Bay, and a 15 acre, unentitled air rights parcel.
Medical Product Development
As of December 31, 2012, the Company owned approximately 97% of of Sangart. Sangart is a development stage biopharmaceutical company principally engaged in developing medicines designed to enhance the oxygenation of oxygen deprived tissues through targeted oxygen delivery. Sangart commenced human clinical trials of MP4OX, a solution of cell-free hemoglobin administered intravenously to provide rapid oxygen delivery to ischemic (oxygen deprived) tissues. Sangart completed a Phase 2 clinical trial of MP4OX in 316 trauma patients.
Crimson is engaged in the production and sale of premium, ultra premium and luxury wines. Crimson owns four wineries: Pine Ridge Vineyards, Archery Summit, Chamisal Vineyards and Seghesio Family Vineyards.
Leucadia National Corp
20TH FL, 315 PARK AVENUE SOUTH
NEW YORK NY 10010