Berkshire Hathaway has made another “bolt-on” acquisition and taken over Sonnax Industries, Inc., via a sale of the company’s assets, to form a new subsidiary of Berkshire’s Marmon Holdings.
The new company will operate as Sonnax Transmission Company.
Terms of the acquisition were not disclosed.
Sonnax is an industry leader in the cutting edge design, manufacture and distribution of the highest quality products to the automotive aftermarket, commercial vehicle industries, and industrial sectors utilizing drivetrain technology.
As an employee-owned company, the sale was overwhelmingly approved by vote of Sonnax employees. Steve Boyer becomes President of Sonnax Transmission, and will work closely with Sonnax Industries CEO Tommy Harmon to ensure a smooth transition into Marmon.
“Joining Marmon affords Sonnax employees the support and stability of a very successful global organization while maintaining its homegrown, entrepreneurial feel,” Harmon said. “Above all, this expands what we can deliver to our customers, so our future is bright.”
Sonnax Transmission joins Marmon’s Automotive Aftermarket group, whose businesses are well known for providing innovative, engineered solutions for aftermarket installers.
Berkshire’s Marmon Holdings comprises about 175 independent manufacturing and service businesses with facilities in 23 countries and total revenues exceeding $7.7 billion in 2017.
© 2018 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.