The term synergy, the positive results that come when businesses work together, is often promised in the creation of conglomerates, but is rarely achieved. Most often it is promised by investment bankers trying to get companies to merge, only to later prove to be a mirage when the actuality of the needs of separate operating units prove incompatible.
Even Small Synergies Make a Difference
Fortunately, for Berkshire Hathaway’s Fruit of the Loom and Wells Lamont Industrial companies the synergies are real and bring benefits to both units.
Wells Lamont Industrial, which operates as a part of Berkshire Hathaway’s Marmon Group, has struck a deal with Berkshire’s Fruit of the Loom to equip the employees in its production facilities with Wells Lamont gloves starting in 2015.
Wells Lamont Industrial manufactures a comprehensive selection of hand protection including cut resistant, heat resistant, general purpose, liquid/chemical resistant, leather gloves, and other types of gloves.
“As a Berkshire Hathaway company we look to support our sister companies and were thus introduced to Wells Lamont Industrial,” says Wendy Emmitt, Senior Manager of Safety for Fruit of the Loom. “We were so pleased to discover their hand and arm solutions were not only more cost effective, but were of the highest quality in the industry.
Whether cutting fabric, welding balancing beams, stitching footballs or handling logistics, we have thousands of employees that require gloves to keep their hands protected,” says Emmitt. “Having the guidance and support to ensure we use the right product for each job is critical and Wells Lamont Industrial has proven to be the right partner in making those decisions.”
Fruit of the Loom was acquired by Berkshire Hathaway in 2002, and the Marmon Group was acquired by Berkshire Hathaway in 2008.
© 2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.