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McLane

McLane Company and Love’s Travel Stops Extend 21-Year Relationship

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company, a leading supply chain services company providing grocery and foodservice supply chain solutions, has renewed its service agreement with long-time customer Love’s Travel Stops.

As part of this extended agreement, McLane will continue to deliver to more than 430 Love’s stores across 41 states, as Love’s Travel Stops continues to add approximately 40-50 stores per year.

“McLane continually shows commitment to our business. McLane’s Center for Category Innovation assists our team with exceptional category management resources enabling us to grow sales year over year,” said Mark Romig, director of merchandising at Love’s Travel Stops. “McLane’s national scope allows us to achieve our growth goals while meeting the needs of our Customers in an efficient way.”

“Love’s provides a rewarding experience for its customers and we are honored they chose to continue to utilize our best-in-class resources. McLane’s procurement, technology and operations provide our customers superior service and consistency of performance as well as expanded product offerings, regardless of location. As Love’s continues to expand their network, McLane will be there to assist in reducing cost and driving efficiency at retail,” said Vito Maurici, senior VP of sales of McLane Grocery.

© 2017 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 Establishes Dublin Office

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance Company (BHSI) has established a new office in Dublin, Ireland, and appointed Cormac McNamara as Property & Casualty Manager, BHSI Ireland.

“Cormac will build our local team and lead our efforts to bring all of BHSI’s Southern European underwriting capabilities to Ireland,” said Tom Bolt, President, UK and Southern Europe. “We are excited to further expand our geographic footprint in the region as we steadily grow our underwriting capabilities as well.”

Cormac comes to BHSI with 24 years of experience in the UK and Ireland insurance markets. Cormac spent the last six years at MS Amlin/Mitsui Sumitomo Insurance Group, where he held a variety of underwriting positions, most recently Ireland Underwriting & Distribution Manager. Before Mitsui Sumitomo, Cormac was Commercial Insurance Manager, UK Region and Ireland, at Chubb Insurance Company of Europe, and held several other underwriting positions at Chubb prior to beginning his career at QBE Europe.

© 2017 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 Energy

Berkshire Hathaway’s Utilities Save Millions in Q2 Thanks to EIM

(BRK.A), (BRK.B)

Several of Berkshire Hathaway’s utilities, PacifiCorp and NV Energy, saved millions so far this year through the western Energy Imbalance Market (EIM).

The California Independent System Operator (ISO) reported that the western Energy Imbalance Market produced benefits of $39.52 million in the second quarter of 2017. The benefits since the western regional market was launched in 2014 now total $213.24 million.

In 2014, Berkshire Hathaway Energy’s PacifiCorp agreed to become the first participant in a new Energy Imbalance Market (EIM) as a way to balance electricity in-flows and out-flows on a regional basis and bring millions of dollars in benefits to participating utilities.

During the most recent three-month period, PacifiCorp saw benefits of $8.81 million, and NV Energy total benefits in April and May were $4.62 million, while June benefits are still pending data verification.

The EIM began financially-binding operation on November 1, 2014, by optimizing resources across the ISO and PacifiCorp’s balancing authority areas (BAAs), which includes California, Oregon, Washington, Utah, Idaho and Wyoming.

The EIM improves the integration of renewable resources and increases reliability by sharing information between balancing authorities on electricity delivery conditions across the entire EIM region.

Portland General Electric plans to enter the EIM in October 2017, followed by Idaho Power and Canada’s Powerex in April 2018. The Balancing Authority of Northern California/Sacramento Municipal Utility District, Seattle City Light and Los Angeles Department of Water and Power will begin participating in April 2019. Salt River Project of Phoenix is slated to enter the market in April 2020.

The EIM’s state-of-art technology automatically optimizes the real-time grid to find low cost energy regardless of its location to serve consumers in California, Arizona, Oregon, Washington, Utah, Idaho, Wyoming and Nevada.

Excess renewable energy in one area can be used to serve demand in another seamlessly and effectively, avoiding turning off clean energy resources when not enough local demand exists to use it. Another benefit comes from reducing the amount of energy flexibility reserves utilities must carry to manage load and supply variability, as they can tap into resources outside of their service area to serve their load at less cost.

During Q2 2017, the western EIM helped improve use of renewable resources that is estimated to have reduced carbon emissions by 28,700 metric tons. These emission reductions were made possible by using 67,055 megawatt-hours of excess renewable energy that otherwise would have been turned off.

“The EIM had another strong quarter,” said ISO President and CEO Steve Berberich. “The western real-time market is a proven platform for utilities to find and use low-cost energy that produces substantial cost savings — and it will only get better with seven more utilities preparing to join the market by 2020.”

© 2017 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 Berkshire Hathaway Energy

Berkshire Supports Oncor’s Plan to Swap Assets with Sharyland

(BRK.A), (BRK.B)

Berkshire Hathaway has no problem with Oncor planned asset swap with Texas utility Sharyland.

Oncor announced that it had entered into an agreement with Sharyland to swap assets in a transaction valued at approximately $400 million.

Under the terms of the proposal, Sharyland will exchange their retail distribution assets and retail distribution operations for a set of Oncor’s transmission lines in West and Central Texas.

Sharyland and Sharyland Distribution & Transmission Services (SDTS) will transfer to Oncor their retail distribution assets and retail distribution operations located in their Stanton, Brady, and Celeste (SBC) service territories, as well as their McAllen service territory.

Oncor will transfer to SDTS transmission lines of similar value located in West and Central Texas, which Sharyland will operate on behalf of SDTS.

The proposed transaction also means that Sharyland’s approximately 54,000 retail distribution customers will become Oncor customers and, as a result, will see significantly reduced regulated retail delivery rates.

In a statement, Berkshire Hathaway Energy said applauds Oncor and the various stakeholders for developing solutions to ensure continued safe, reliable, and affordable service for customers.

“The problem-solving culture demonstrated by Oncor and its management team will be a great fit with Berkshire Hathaway Energy,” said Greg Abel, Berkshire Hathaway Energy chairman, president and CEO. “The conditions of the agreements are examples of Oncor’s strong commitment to customers; that same commitment is reflected across Berkshire Hathaway Energy’s businesses.”

© 2017 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
Berkshire Hathaway Energy

Bankruptcy Court Adopts Berkshire’s Timeline for Oncor Deal

(BRK.A), (BRK.B)

The U.S. Bankruptcy Court adopted key hearing dates for future bankruptcy proceedings related to Berkshire Hathaway Energy’s offer to purchase Energy Future Holdings Corp. (EFH) and, ultimately, Oncor Electric Delivery Company LLC.

“We are pleased with the Bankruptcy Court’s decision, which maintains the timelines set forth in our merger agreement,” said Greg Abel, Berkshire Hathaway Energy chairman, president and CEO. “Our offer is a simple, straightforward deal that is beneficial to Oncor’s customers. Once the necessary approvals are received, we’re looking forward to Oncor joining the many Berkshire Hathaway businesses that are helping to grow the economy in Texas.”

As a member of Warren Buffett’s Berkshire Hathaway Inc. family of businesses, Oncor would receive the financial support to continue investing capital in critical infrastructure that will make the Texas energy grid even stronger and more reliable.

Establishing the bankruptcy court schedule was an important part of the acquisition process. Berkshire Hathaway Energy will continue working with stakeholders in Texas to garner additional support for its bid for Oncor.

So far, 10 major stakeholder and consumer groups have endorsed the deal and its 47 regulatory commitments that benefit the stakeholders in Texas.

© 2017 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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Lubrizol

Lubrizol Upgrades Textile Coatings Center of Excellence

(BRK.A), (BRK.B)

What’s more excellent than excellent? Excellenter? Excellentest? Well, anyway, Berkshire Hathaway’s Lubrizol has announced that its Performance Coatings business is upgrading its Textile Coatings Center of Excellence in Gastonia, North Carolina.

The facility, which focuses on research and development of coatings technologies for textile and non-woven substrates, and is dedicated to formulating and testing innovative coating technologies for an array of technical textile applications.

The new Center of Excellence is a state of the art textile coating product development and applications testing facility.

“By upgrading our capabilities, we continue our longstanding commitment to the textiles industry”, says Bob Bonner, technical manager. “This investment expands our ability to deliver a wide range of textile coating and testing services for customers, including flame retardancy, abrasion resistance, water repellency, chemical resistance, and stretch-restriction capability.”

“Our textiles team in Gastonia is focused on providing an outstanding experience for customers through technical service”, comments Ted Parigian, sales manager, textile coatings. “They’re constantly developing new technologies, and these upgrades will enhance our ongoing ability to deliver winning solutions.”

Lubrizol investments in global Center of Excellences ensure the ability for highly skilled technical experts to collaborate with customers and each other in world class labs with modern equipment to efficiently deliver advanced coating technologies to customers. “Reducing our response time to customers is a key business goal,” notes Lee Young, technical director. “When we can bring the right, differentiated products to customers and meet their time requirements in the process, then we are a critical part of their success and profitability.”

© 2017 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 Berkshire Hathaway Energy

Stakeholders Continue to Line Up for Berkshire’s Oncor Bid

(BRK.A), (BRK.B)

Berkshire Hathaway continues to line up supporters for its Oncor Electric Delivery Company bid, including from a host of key stakeholders.

The International Brotherhood of Electrical Workers Local 69 and Targa Pipeline Mid-Continent WestTex LLC/Targa Midstream Services LLC are the latest stakeholders to have expressed support for Berkshire’s proposed acquisition of Oncor.

“Support from the IBEW and Targa along with the endorsements we’ve received from other Texas business, community and consumer groups reinforces that our proposal is good for both Oncor’s customers and for Texas,” said Greg Abel, Berkshire Hathaway Energy chairman, president and CEO. “We appreciate the continued and growing support as we work through the transaction process; collectively, these efforts help move the proposal forward to benefit Oncor’s customers, creditors and key stakeholders.”

The announcement brings the total number of influential Texas stakeholder groups that support Berkshire Hathaway Energy’s proposed acquisition of Oncor to 10, including: Public Utility Commission Staff; Cities Served by Oncor; Texas Industrial Energy Consumers; Office of Public Utility Counsel; TXU Energy; NRG Energy; the Texas Energy Association for Marketers (TEAM); the Alliance for Retail Markets (ARM); IBEW Local 69; and Targa Pipeline Mid-Continent WestTex LLC/Targa Midstream Services LLC. TXU Energy and NRG Energy represent two of the largest retail electric providers in Texas, with TEAM and ARM representing dozens of Texas electric market participants. ARM participating members include Champion Energy Services, LLC; Direct Energy, L.P.; NRG Retail Companies; and TXU Energy Retail Company LLC.

© 2017 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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Mouser Electronics

Mouser Electronics Inks Distribution Deal with InvenSense

(BRK.A), (BRK.B)

Berkshire Hathaway’s Mouser Electronics has signed a global distribution agreement with InvenSense, a TDK Group company and a leading provider of microelectromechanical systems (MEMS) sensor platforms. InvenSense provides solutions that combine MEMS sensors with proprietary algorithms and firmware to intelligently process, synthesize, and calibrate the output of sensors, maximizing performance and accuracy.

InvenSense’s motion tracking, audio and location platforms and services are ideal for mobile, wearables, smart home, industrial, automotive, and Internet of Things (IoT) products.

“This global agreement with InvenSense continues our commitment to providing the latest in MEMS sensors,” said Kristin Schuetter, Vice President, Supplier Management, Mouser Electronics. “Design engineers will have easy access to InvenSense’s world-class portfolio of MEMS devices and evaluation tools, backed by Mouser’s unsurpassed customer service and best-in-class logistics.”

“With Mouser Electronics as a global channel partner, InvenSense can better support our customers and enhance our worldwide distribution network,” said Dan Goehl, Vice President, Worldwide Sales, InvenSense. “By capitalizing on Mouser’s excellent supply-chain services and support, we can expand our global presence and get our products into the hands of design engineers even quicker.”

The InvenSense product line, available at Mouser Electronics, includes a range of MEMS audio and motion devices. The ICS‐52000 is a bottom port, low-noise microphone with a 24-bit time-division multiplexed (TDM) digital output. This complete microphone solution is ideal for microphone arrays and can support up to 16 synchronized microphones on one data line, which can significantly reduce the cost and complexity of the audio signal chain.

Mouser is also stocking three series of InvenSense’s MotionTracking™ devices. The ICM-20602 high-performance 6-axis MEMS MotionTracking device combines a 3-axis gyroscope and a 3-axis accelerometer in a small 3.0 × 3.0 × 0.75 mm package. The device offers gyroscope sensitivity error of ±1 percent, and includes a 1 kByte FIFO to reduce traffic on the serial bus interface and to minimize system power consumption.

The ICM-20648 6-axis MEMS MotionTracking device features an onboard Digital Motion Processor™ (DMP), which offloads computation of motion processing algorithms from the host processor to improve system power performance. The ICM-20648 is a 3-axis gyroscope and a 3-axis accelerometer in a small 3.0 × 3.0 × 0.9 mm package. Tuned for wrist-worn wearables, the ICM-20648 includes step count, activity classifier, and Bring-to-See (B2S) gesture applications.

The ultra-low-power ICM-20948 9-axis MEMS MotionTracking device offers a 3-axis gyroscope, 3-axis accelerometer, and 3-axis compass integrated in a 3.0 × 3.0 × 1.0 mm, 24-pin QFN package. The device runs at just 2.65 mW and includes an on-chip DMP and run-time calibration firmware to enable designers to eliminate the costly and complex selection, qualification, and system-level integration of discrete devices.

© 2017 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 Completes Third Purchase with Kort & Scott Financial Group

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced the sale of a newly constructed, 126-unit, mid-rise community located in Lake Balboa, California.

Managing Director Vince Norris, along with Managing Director Jim Fisher and Senior Director Mike Smith from Berkadia’s Los Angeles office completed the sale on an “off-market” basis.

The transaction was completed on behalf of a private developer for Anaheim-based, Kort & Scott Financial Group. Escrow closed on July 12.

Kort & Scott Financial Group has completed three recent purchases through Norris at Berkadia. In addition to this acquisition, the group also purchased 6940 Sepulveda Blvd. and the Plaza at Lafayette. For Kort & Scott, this marks nearly $250,000,000 of transactions this year and increases their multifamily portfolio to over 9,000 units.

“With this acquisition, Kort & Scott has over 220 units in the Van Nuys sub-market and will be able to achieve tremendous operating efficiencies and take advantage of the Valley’s steady rent growth,” said Norris.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation, 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.

© 2017 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
Berkshire Hathaway HomeServices

Crager Real Estate Joins Berkshire Hathaway HomeServices

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices, part of the HSF Affiliates LLC family of real estate brokerage franchise networks, today announced that independent brokerage Crager Real Estate has joined the network operating as Berkshire Hathaway HomeServices Crager Tobin Real Estate.

The brokerage, founded in 2001 by Broker/Owner Laura Crager, operates throughout Central Ohio including Champaign, Clark, Delaware, Fayette, Franklin, Madison and Pickaway counties and surrounding communities.

Berkshire Hathaway HomeServices is one of America’s fastest-growing brokerage networks with nearly 43,500 agents and 1,313 offices named to the brand since its 2013 launch.

Crager Tobin Real Estate remains independently owned and operated by Laura Crager and her daughter Kate Crager-Tobin. “We are the same great, local company now backed by a powerful brand,” Laura Crager said. “Berkshire Hathaway HomeServices stands for trust, integrity, stability and longevity and the name stands apart in real estate. We’re proud to bring this brand home to our communities.”

“Berkshire Hathaway HomeServices offers us systems, tools and consultation to help us enhance and grow our operations for years to come,” explained Kate Crager-Tobin. “We’re building a premium environment for our agents to help them deliver incomparable service to our Central Ohio clients.”

With their transition, Crager Tobin Real Estate agents gain access to Berkshire Hathaway HomeServices’ Global Network Platform, a powerful tool suite focusing on lead generation, marketing support, social media, video production/distribution and more. Beyond technology, the brand provides national and international marketing support, professional education and the exclusive Luxury Collection for high-end listings.

As part of the network, Crager Tobin Real Estate is also in line for client referrals from outside its marketplace and relocation business. “We considered franchise opportunities for some time and decided Berkshire Hathaway HomeServices is the best choice for our brokerage, agents and clients,” said Laura Crager. “It gives us all pieces of the puzzle.”

Growth is on the minds of Laura Crager and Kate Crager-Tobin. “We believe the Berkshire Hathaway HomeServices brand will have broad appeal among real estate professionals and consumers alike,” Laura Crager said. “We would like to increase our agent count and add new offices throughout the marketplace over the next few years.”

“We are incredibly excited about the future and our agents can’t wait to represent the brand,” said Kate Crager-Tobin. “We will grow, yet we will always be the family-oriented brokerage that does what’s best for its clients.”

“We proudly welcome Crager Tobin Real Estate to our network,” said Gino Blefari, president and CEO of the Berkshire Hathaway HomeServices. “Laura and Kate operate a terrific, local company with a great reputation. The brokerage will be strong brand ambassador in Central Ohio.”

© 2017 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.