Published March 24, 2010
Berkshire unit buys liquor distributor
(OMAHA, Nebraska) A subsidiary of Warren Buffett's company said on Monday that it is buying a liquor distributor that serves Georgia and North Carolina.
Terms of McLane Co's acquisition of Kahn Ventures Inc and Empire Distributors were not disclosed in the statement announcing the deal.
Mr Buffett, who is chairman and CEO of McLane's Omaha-based parent company Berkshire Hathaway Inc, said that he is excited about the Empire deal because of the opportunities that Berkshire, McLane and Empire envision in the beverage industry. 'We expect that the Empire acquisition will provide us with a solid platform for potentially acquiring other similar high-quality wholesale distributors,' he said in a statement.
Neither Mr Buffett nor a McLane spokesman responded immediately to messages left on Monday.
In keeping with Berkshire's practice, no changes are planned at Empire. The news release said that the Atlanta-based distributor will continue operating just as it has for 70 years.
Empire has eight facilities equipped with high-tech equipment, including bottle scanning and GPS routing, to help them operate efficiently. Berkshire said that with the acquisition, Empire will gain access to more resources and operational best practices.
McLane is one of Berkshire's roughly 80 subsidiaries. It is based in Temple, Texas, and distributes groceries, tobacco and other items to convenience stores, drug stores, wholesale clubs and other retailers. Berkshire bought McLane from Wal-Mart in 2003.
Berkshire owns clothing, furniture, jewellery and corporate jet firms, but its insurance and utility businesses accounted for more than one-third of the company's revenue last year. It also has major investments in such companies as Coca-Cola Co and Wells Fargo & Co. -- AP