Warren Buffett's Berkshire Hathaway buys remaining 20% of truck-stop operator Pilot Travel Centers
By Bill Peters
The purchase follows a settlement between Berkshire and the Haslam family, which also owns the NFL's Cleveland Browns
Warren Buffett's Berkshire Hathaway Inc. on Tuesday said it had taken full ownership of truck-stop operator Pilot Travel Centers from the Haslam family - the owners of the NFL's Cleveland Browns - following a settlement agreement between the sides earlier this month.
In a brief statement, Berkshire (BRK.A) (BRK.B) said it had bought Pilot Corp.'s remaining 20% stake in Pilot Travel Centers, which runs hundreds of Pilot and Flying J truck stops and gas stations, along with other travel services, in the U.S. and Canada. No terms of the deal were provided.
"While this has certainly been an emotional decision for us, it is one we felt was right for our family at this time," Jim Haslam, who founded Pilot Corp. in 1958, said in a statement.
Earlier this month, Berkshire said it had settled a lawsuit with the Haslam-owned Pilot Corp. over how much Pilot Travel Centers was actually worth.
The Haslam family alleged that Berkshire had attempted to undervalue the company, according to the Wall Street Journal. Berkshire, in turn, alleged that Jimmy Haslam, Jim Haslam's son, had leaned on employees in an effort to unfairly push the company's value higher - accusations that led to a federal investigation.
Berkshire had amassed an 80% stake in Pilot Travel Centers in recent years for $11 billion, according to the Wall Street Journal. As part of that investment deal, after Berkshire took control, Pilot Corp. would have 60 days, starting at the beginning of this year, to sell its leftover 20% to Berkshire, as the Associated Press explained.
Jimmy Haslam and his wife, Dee and the Haslam family have owned the Browns since 2012, according to the Browns' website.
Shares of Berkshire were up 0.2% on Wednesday.
-Bill Peters
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
01-17-24 1205ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening In the Markets This Week
-
Can the Fed Declare Victory on Inflation?
-
After Earnings and a 56% Rally In 2024, Is Arm Stock a Buy, a Sell, or Fairly Valued?
-
How Morningstar Rates Stocks
-
After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?
-
Home Depot Earnings: Macro Factors Pinch Demand, but Long-Term Outlook Intact
-
Tariffs On Chinese EVs Offer US Automakers a Chance to Capture Demand
-
The Best REITs to Buy
-
3 Hot Stocks to Buy That Still Look Undervalued
-
After Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?