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Johns Manville

Johns Manville to Expand Manufacturing in Ohio

(BRK.A), (BRK.B)

Berkshire Hathaway’s Johns Manville, a global building and specialty products manufacturer, has announced it will make a significant investment toward expanding capacity at its Defiance, Ohio, manufacturing facility.

The expansion will allow Johns Manville to increase the production of its fiberglass pipe insulation products, Micro-Lok® HP and Micro-Lok® HP Ultra.

“We are investing in our mechanical insulation business to meet increasing customer demand for our market-leading fiberglass pipe insulations,” said Mary Rhinehart, President and CEO of Johns Manville. “Our decision to make this investment is an intentional step that positions JM to support our customers in a growing industry.”

JM will begin the capacity expansion project early this year and anticipates the completion of the first new production line in 2020.

“Thanks to the support of our customers, we have seen continued growth in this business since we rebuilt the Defiance pipe insulation plant in 2007,” said Bob Wamboldt, President of JM’s Insulation Systems business. “The growth is a result of market demand and, more importantly, demonstrates a distinct preference for JM’s pipe insulation, Micro-Lok HP and HP Ultra.”

Mike McCann, the mayor of Defiance, said the pipe expansion will benefit the city.

“We are excited that Johns Manville has continued to support our community by investing in its business here,” McCann said. “Naturally, JM’s presence is good for the local economy, and the positive influence JM has on the people and families who live in Defiance is incredibly valuable.”

Jim Swift, the Plant Manager in Defiance, will lead the expansion project.

“JM has been part of the Defiance community for more than 60 years,” Swift said. “We are excited to create more jobs as part of this expansion and to continue supporting community organizations. Our employees have done an excellent job in driving the success of our pipe insulation, and we will continue to focus on providing a consistently high-quality product for our customers.”

© 2019 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.

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Benjamin Moore

Benjamin Moore Elevates Calkins to Chairman & Chief Executive Officer

(BRK.A), (BRK.B)

Benjamin Moore & Co., North America’s favorite paint, color and coatings brand, today announced that Dan Calkins, currently President and Chief Operating Officer, has been named Chairman and Chief Executive Officer, effective immediately. Calkins now reports to Berkshire Hathaway Vice Chairman Greg Abel and succeeds Mike Searles, who retired after five years at the helm of the of the company.

Calkins began his career with the company in 1987 as a sales trainee. Throughout his 32-year tenure with Benjamin Moore & Co., Calkins has held a series of progressively influential and responsible positions, bringing significant leadership, sales and industry expertise to his new post. In recent years, Calkins served as President of Global Sales where he influenced growth and an ambitious strategy for expanding distribution through the independent channel.

“Benjamin Moore & Co. has long established itself as an industry leader, and under Dan Calkins’ guidance, we believe they are primed for an accelerated trajectory into the future,” said Greg Abel, Berkshire Hathaway Vice Chairman. “Dan embodies the Benjamin Moore core values and both his proven track record and strong business acumen give us incredible confidence for the company’s future success.”

Under Calkins’ leadership, Benjamin Moore & Co. will remain dedicated to the vision of its founder, Benjamin Moore, in 1883: produce the highest quality paints and color in the industry, and deliver them through a nationwide network of knowledgeable, customer-friendly, independent retail locations. With a commitment to research and development unrivaled in the architectural coatings industry, Benjamin Moore & Co. is determined to continue to service its customers including painting contractors, architects, interior designers, national accounts and retailers with the best products and services.

© 2019 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.

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Minority Stock Positions Stock Portfolio

Fleet of BYD Electric Buses to Run in Colombia

(BRK.A), (BRK.B)

BYD (Build Your Dreams), a world leader and pioneer in battery and zero-emission vehicles, has sold 64 electric buses to Medellín, Colombia’s second largest city.

The order is second in Latin America only to Chile’s order of 100 buses.

The buses will be BYD’s 12.5-meter-long K9G, which has a seating capacity of 80. The buses are have a range of roughly 300 kilometres per charge, with a two hour charging time.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2019 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.

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Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Specialty Insurance Expands Team in Europe

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance (BHSI) has expanded its team in Europe with the appointment of Alfred Barth as Senior Claims Adjuster in Germany.

“Alfred brings extensive experience of managing claims operations, leading coinsurance markets on claims across the world and handling both high volume and high complexity losses. Most importantly, he shares our commitment to providing customers with an excellent claims product,” said Andrew Walker, Head of Claims, BHSI Europe. “We are pleased to have him at the helm bringing our claims service to customers in Germany and throughout Europe.”

Alfred comes to BHSI after nearly four decades at C. Gielisch GmbH in Düsseldorf, where he was most recently Senior Loss Adjuster, Division Manager and an Executive Board Member. He began his career at C. Gielisch in Cologne as a Surveyor and Loss Adjuster. He holds a Diploma in Business Administration from Cologne University of Applied Sciences and is an affiliated member of the Australasian Institute of Chartered Loss Adjusters (AICLA).

BHSI offices in Munich and Düsseldorf underwrite property, casualty, medical malpractice, marine and executive & professional lines for a broad range of business segments in Germany.

Alfred will be based in the BHSI office in Düsseldorf.

© 2019 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.

Categories
Acquisitions Minority Stock Positions Stock Portfolio

Kraft Heinz Completes Acquisition of Primal Nutrition

(BRK.A), (BRK.B)

The Kraft Heinz Company has completed its acquisition of Primal Nutrition, LLC, makers of Primal Kitchen branded products.

Primal Kitchen is a young, vibrant, better-for-you brand primarily focused on Condiments, Sauces and Dressings including Mayonnaise, Salad Dressings and Avocado Oil, with growing product lines in Healthy Snacks and other categories.

Primal Kitchen will join Kraft Heinz under Springboard, which is Kraft Heinz’s dynamic platform created to partner with founders and brands that will disrupt the food industry.

Leveraging Kraft Heinz’s assets and infrastructure, Primal Kitchen will operate as an autonomous company and continue to be led by its current leadership team. Its headquarters will remain in Oxnard, California.

“Primal Kitchen is an authentic, premium and growing brand that complements our core Condiments & Sauces categories,” said Paulo Basilio, U.S. Zone President for Kraft Heinz. “We are excited to partner with the Company’s strong team to drive growth across multiple categories and reach more consumers looking for these amazing products.”

Mark Sisson, Co-Founder of Primal Kitchen said, “Kraft Heinz recognizes the value of our Primal Kitchen mission and the consumer demand for it. This philosophy will stay with us as we leverage the resources of this new partnership to reach millions more of the consumers who have been seeking products like ours for years.”

© 2019 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.

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HomeServices of America

ReeceNichols Real Estate Expanding in Missouri

(BRK.A), (BRK.B)

ReeceNichols Real Estate, the leading real estate company in Missouri, is expanding its footprint in the Branson, Missouri area with the acquisition of a top performing RE/MAX office.

The company is a Berkshire Hathaway affiliate and a wholly-owned subsidiary of HomeServices of America, Inc.

ReeceNichols has continued to expand in southern Missouri, following a merger with Carol Jones REALTORS® in June 2018, creating a company with more than 3,000 real estate agents in 31 branch offices and 26+ franchise offices throughout Kansas and Missouri.

The new office, ReeceNichols Branson West Lakeview, located in the Welcome Center at Stonebridge Village near Route 265, becomes the 12th office in ReeceNichols’ southern region. It is ReeceNichols’ third office in the Branson area.

“We’ve watched as the real estate market in Branson has continued to grow,” said President & CEO Mike Frazier. “It is a premier vacation destination and an in-demand area for second homes. Acquiring this new office is a big win for us.”

David Gubin, managing broker for the Branson and Branson West offices, and Rick Billington, who managed the RE/MAX office, will be co-managing brokers for ReeceNichols’ three offices in the Branson area: Branson, Branson West and Branson West Lakeview. Billington operated the RE/MAX franchise for 10 years. In 2018, the office closed just over $30 million in sales volume.

“This is a very strong group in the Branson market and we are thrilled to bring Rick and his agents on board,” said Shaun Duggins, president of ReeceNichols’ southern region. “Taking their knowledge and combining it with the cutting-edge tools, training and support ReeceNichols can provide, we’ll be able to service the Branson area even better.”

More acquisition talks are in the works. Duggins said he plans to grow ReeceNichols’ southern region by nearly 200 agents in 2019 and complete three or four acquisitions.

© 2019 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.

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Berkadia

Berkadia Secures $100 Million Financing for Cleveland Office Tower

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the $100 million financing secured for Ernst & Young Office Tower, a 23-story office property in downtown Cleveland.

Senior Managing Director Mark Vogel and Associate Director Eric Bevilacqua of the Cleveland office secured the refinancing through JP Morgan with mezzanine debt from Axonic, on behalf of Ohio-based The Wolstein Group.

The deal closed on December 6.

The two-year permanent refinancing features an adjustable interest rate, three one-year extension options, an 80 percent loan-to-value ratio and interest only payments.

“We were honored to work through this complicated transaction on behalf of The Wolstein Group and are thrilled with the resulting financing terms,” said Vogel.

Located at 950 Main Ave., Ernst & Young Office Tower offers convenient access to the area’s restaurants, commuter rail and the waterfront district of Cleveland. The property features 465,000 square feet of leasable office space, and on-site amenities include garage parking, a dry cleaner, a fitness center and a concierge. The building was 95 percent occupied at the time of the financing.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA.

The company is among the top Freddie Mac and Fannie Mae multifamily lenders.

Berkadia owes its origins to GMAC Commercial Mortgage Corporation, which was acquired in 2009 by Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC, and Goldman Sachs Capital Partners. Christened Capmark Financial, the company had $10 billion of originations in 2008 and a servicing portfolio of more than $360 billion before running into bankruptcy in October 2009.

In a deal approved by the bankruptcy court, Capmark sold its mortgage loan and servicing to the newly formed Berkadia in a deal worth $515 million.

The deal brought Berkshire into the heart of the commercial loan serving business, and the company has one of the largest commercial real estate servicing portfolios.

© 2019 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.

Categories
Minority Stock Positions Stock Portfolio

BYD Selling 1,000 Electric Buses a Month

(BRK.A), (BRK.B)

BYD (Build Your Dreams), a world leader and pioneer in battery and zero-emission vehicles, is selling 1,000 of it pure electric buses a month.

BYD announced that its unaudited sales volume for November 2018 was 1,049 buses.

The new energy company based in Shenzhen, China, has its buses in service around the world, including the U.S. , Canada, India, South Korea, Norway, and of course China.

The company has successfully partnered with local bus manufacturers in a number of countries, including Alexander Dennis Limited (ADL) in England and Olectra Greentech in India.

In England, BYD-ADL is producing the first pure electric double-decker buses.

Through November, BYD had sold a total of 451,050 cars, SUVs, buses, and other vehicles, with 201,161 being New Energy vehicles.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 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.

Categories
Acquisitions Kraft Heinz Minority Stock Positions Stock Portfolio

Hedge Fund Opposes Kraft Heinz’s Campbell’s Bid

(BRK.A), (BRK.B)

Unhappy with its large position in Kraft Heinz, Czech Republic-based hedge fund Krupa Global Investments is threatening to wage a proxy fight over a possible Kraft Heinz bid for Campbell Soup Co.’s international business.

Kraft Heinz and Mondelez, along with private equity firms Bain Capital LP, KKR and FinTrek Capital Hong Kong Co., are reportedly the approved bidders for an auction that will see the winner gain Campbell’s Australian cookie brand Arnott’s and its Danish baked-snacks maker Kelsen Group.

“This auction process may be great for Dan Loeb and Campbell’s Soup but it does nothing for Kraft Heinz and its shareholders,” said KGI Chairman Pavol Krupa in a statement. “Campbell’s Soup is selling its international assets for a reason thus we are concerned that these assets could be a drain on Kraft Heinz’s profitability and add to its debt. We strongly oppose Kraft Heinz’s participation in this auction and will organize a strong campaign against it if necessary.”

KGI has been campaigning for an $80/share buyout of public investors by Warren Buffett and Berkshire Hathaway.

KGI cites a recent piece by Daniel Thurecht in Seeking Alpha backing up KGI’s $80/share valuation published on November 20, 2018 and a piece by Lauren Hirsch in CNBC underscoring the benefits of large legacy consumer companies going private published on October 27, 2018.

“We do not believe Warren Buffett wants his career tarnished by the embarrassment of losing Kraft Heinz investors 40 percent of their investments from 2015 prices. We are liaising with Kraft Heinz management, 3G Capital and Berkshire Hathaway to figure out a constructive solution that will benefit Berkshire Hathaway, 3G, Kraft Heinz shareholders, and the Kraft Heinz brand. We believe such a resolution is possible and will not rest until one is achieved,” added Krupa.

© 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.

Categories
Minority Stock Positions Stock Portfolio

BYD Electric Buses Begin Test Runs in Delhi

(BRK.A), (BRK.B)

BYD (Build Your Dreams), a world leader and pioneer in battery and zero-emission vehicles, has begun a three month test run of its pure electric bus in Delhi.

Built in India, the 12-metre pure electric bus, eBuzz K9, has a seating capacity of 35.
The buses are manufactured in New Delhi by Olectra Greentech (formerly known as Goldstone Infratech) in partnership with BYD Auto Industry Co. Ltd.

Olectra-BYD buses are currently running in four states. The company first placed electric buses in service, beginning in September 2017 between Kullu-Manali under the Himachal Roadways Transport Corporation (HRTC), and in September 2018 between the city of Hyderabad and the Rajiv Gandhi International Airport under the Telangana State Road Transport Corporation (TSRTC).

Olectra-BYD’s eBuzz K7 is also in service in Mumbai under the Brihan Mumbai Electricity Supply and Transport Undertaking (BEST).

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 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.