Berkshire Hathaway’s recently acquired battery maker Duracell will close its Packing Plant in Cleveland, Tennessee by 2018. The move will lay off 140 workers.
Duracell President of Global Operation Robert Lorch said that the closure “makes Duracell’s supply chain more efficient.”
Duracell’s manufacturing plant in Cleveland, Tennessee will not be affected by the closure.
Berkshire Hathaway acquired Duracell in February 2016 when it swapped its shares of Procter & Gamble for the company’s Duracell division.
With Duracell’s $2 billion in annual revenue, Berkshire now owns the market leader in batteries for the home and workplace. The company has highly recognizable brands that consumers in home and work settings are willing to pay more for than private label store brands.
According to the company, Duracell’s CopperTop® and Quantum® batteries command the highest average percent of spending among battery brands, with 33% and 16%, respectively.
Combined, the two product lines now account for close to 50% of the market.
© 2016 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.