Categories
McLane

25 More Years Together for McLane Company and Walmart

(BRK.A), (BRK.B)

Berkshire Hathaway’s McClane Company has inked a 25-year extension to its service agreement with long-time client Walmart.

As part of this extended agreement, McLane will continue to deliver to Walmart stores across the U.S., in addition to becoming the sole provider of candy and tobacco products to the vast majority of Walmart’s retail locations.

The contract is scheduled to renew in May 2017, and with it McLane will now become the exclusive provider of Walmart’s seasonal candy products to all locations nationwide.

“McLane’s ability to deliver temperature-sensitive products to all of our stores and manage our large volume of seasonal goods will ensure we have the best selection of high-quality products at the lowest cost for our customers,” said Vice President of Candy and Impulse Merchandising at Walmart, Joe Grady.

“McLane is proud to be a long-time partner of the world’s largest retailer. We are excited to expand our product mix with Walmart as we continue to serve all of Walmart’s U.S. locations,” said Tony Frankenberger, President of McLane Grocery.

Walmart has a long history with McLane. The company was originally acquired by Walmart in 1990, and later sold to Berkshire Hathaway in 2003.

© 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
See's Candies

See’s Candies Manhattan Store Now Open

(BRK.A), (BRK.B)

See’s Candies lovers in New York City now have a permanent retail location to call their own.

The store is located at 60 West 8th Street in New York City’s Greenwich Village neighborhood, and serves more than 100 varieties of candy—all made from scratch with quality ingredients.

This is the first See’s location on the East Coast with a candy counter, which allows guests to build their own custom boxes of chocolates. And yes, the 625-square-foot shop features the iconic black-and-white checkered floor.

See’s partnered with Bill Rhodes, CEO of Travis Melbren Inc., to open its newest shop.

“What makes See’s Candies so special is the chocolate maker’s commitment to using only the finest and freshest ingredients, where employees are treated like family and customers are warmly greeted with a sample,” said Bill Rhodes. “I’m looking forward to providing this experience and iconic tradition to the residents of New York City.”

As a company, See’s Candies has over $400 million in annual revenues with just under a quarter of that as profit.

A Slow Move East

Currently there are more than 200 company-owned See’s Candies shops in the western half of the U.S., and limited distribution in department stores, along with a handful internationally in Hong Kong, Macau, Taipei, and Tokyo, and additional pop-up stores for the holidays all across the country.

However, until recently, you couldn’t find a full-fledged store east of the Mississippi River. That began to change in 2013 with See’s opening stores in Ohio (in Cincinnati and Columbus) and two stores in Pittsburgh, Pennsylvania.

No word yet as to whether the new Manhattan store will mean we will find See’s Candies outlets sweetening up places like Boston, Philadelphia or Washington, DC.

© 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
MiTek

MiTek’s SAPPHIRE Supply Brings Big Results for McCabe Lumber

(BRK.A), (BRK.B)

Berkshire Hathaway’s MiTek USA has announced that Cincinnati-based McCabe Lumber has implemented MiTek’s SAPPHIRE Supply, resulting in a 50% reduction in the time required to generate estimates and material take-offs.

McCabe Lumber is a long-time user of MiTek’s SAPPHIRE Structure for designing and manufacturing prefabricated components.

Using SAPPHIRE Supply, the newest SAPPHIRE module, McCabe can now create the most-accurate 3-D BIM structural frame in the building industry. With SAPPHIRE Supply, a wide range of structural products can be designed for roofs, floors, and wall applications, including proprietary EWP products, dimensional lumber, and MiTek’s USP Structural Connectors’ metal connectors.

SAPPHIRE Supply can also estimate non-structural materials such as drywall, roofing, and housewrap. A flexible formula-builder gives SAPPHIRE Supply users the power to define their own accumulation rules, further increasing accuracy.

McCabe Lumber has a staff of 120 and generates $40 million in annual revenue, Its customers are predominantly high-end custom production home builders and professional remodelers.

“With SAPPHIRE Supply, our material counts and delivery stages are so accurate, we see a clear path to reducing the error and waste rate from as much as 8% down to 2%, which is near-perfect accuracy,” said Dave Renchen, McCabe Lumber’s Estimating Manager.

“SAPPHIRE Supply uses a single shared structural model, and that offers McCabe a unified solution for efficient, consistent and accurate modeling, estimating, on order fulfillment across their organization,” explained MiTek’s Brian McCormick. “SAPPHIRE Supply eliminates the classic problem of inconsistent sales estimating, because it delivers accurate modeling and estimating on every structure.”

© 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
HomeServices of America

Intero Real Estate Services Recognized with Leading RE Awards

(BRK.A), (BRK.B)

Intero Real Estate Services, Inc., a Berkshire Hathaway affiliate and wholly owned subsidiary of HomeServices of America, Inc, received recognition at the Leading Real Estate Companies of the World annual Awards Gala on March 2, 2017 in Miami.

Leading RE is a global community of more than 550 high quality independent real estate firms with offices around the world.

Intero serves Northern California with 16 offices throughout the greater Silicon Valley. The Intero Franchise network is comprised of nearly 50 affiliates located in Alabama, Arizona, California, Nevada, Tennessee and Texas. The company is headquartered in California’s Silicon Valley.

In addition to the awards received, Intero collected a record number of nominations this year. The dedication Intero applies to excellence in real estate is reflected not only by devoted and skilled associates, but also Intero as a whole for its outstanding accomplishments in 2016.

Intero was one of the recipients of the Top Five Outgoing Closers Award, given to companies with the highest volume of property sales. Having received this award, Intero has accepted its position by improving outgoing referral equivalent closings by 217% in 2016, as well as continuing its commitment to offering unparalleled service and advocacy for their clients. In addition, Intero also received the Momentum Club Award from LeadingRE for its continued efforts in expanding its scope of influence in their field.

Tom Tognoli, President and Chief Executive Officer at Intero says of the awards received, “The dedication our agents put forth in order to not only service our clients, but also giving their time and expertise to the greater community of real estate professionals is something we take great pride in. And, this year, we are very happy to see one of our own acknowledged for her outstanding contributions.”

Diana McGrogan, Director of Relocation at Intero, was acknowledged individually by receiving the President’s Service Award. Her efforts on behalf of Intero and her clients is well-recognized not only by her co-workers and customers, but also by receiving this esteemed accolade from LeadingRE. Diana works hard for her clients, ensuring they are represented by only the most dedicated agents and brokers.

Diana says of her award, “It’s been a great opportunity to work at Intero, and having received this award. Being a member of Leading RE’s Relocation Advisory Council, I recognize the importance of working with our associates out in the field.” Diana continues, “Our team at Intero has received these recognitions not only through our individual contributions, but by working together to achieve our company goals.”

© 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
Berkadia

Berkadia’s L.A. Office is Top Freddie Mac Lender in Western Region, Again

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Leucadia National Corporation, has announced that its Los Angeles team was recently recognized as the 2016 top conventional seller/servicer office by Freddie Mac in the western region for multifamily loans.

This is the third consecutive year that the L.A. office has topped the ranking.

The L.A. office originated $3.16 billion with Freddie Mac in 2016, representing 72 loans secured throughout the country. The L.A. office’s 2016 production with Freddie Mac increased more than a 25 percent over 2015, a year in which they were also the top office in Freddie Mac’s western region.

“Berkadia is proud to recognize our Los Angeles mortgage banking team for the third year in a row. Their continued in-depth knowledge of the programs, deep relationships with the Freddie Mac team and relentless desire to serve their clients has clearly led to their success,” said Ernie Katai, executive vice president and head of production at Berkadia. “It’s work like this being completed by Berkadia offices—in Los Angeles and across the country—that underscores the reason why, on a nationwide combined basis, Berkadia is number one with Freddie Mac, Fannie Mae and HUD, as well as having the distinction of being the one and only lender ranked in the top four within all of these organizations.”

In 2015, Berkadia’s Los Angeles team originated $2.52 billion, and in 2014, they secured $1.79 billion in financing through Freddie Mac.

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
Minority Stock Positions Stock Portfolio

BYD to Build Electric Bus Assembly Plant in France

(BRK.A), (BRK.B)

BYD Company is continuing to build out its global electric bus manufacturing capability. The Chinese battery and vehicle maker has announced it will invest €10 million in a new assembly plant in the town of Allonne, near Beauvais, in Hauts-de-France.

The project will create roughly 100 jobs in its initial phase. The production facility will occupy 32,000 sq m of a parcel totaling nearly 80,000 sq m, and will assemble up to 200 vehicles a year—single-deck buses and coaches—in its first phase.

Other vehicles may be added as BYD expands its product line.

Production is scheduled to get underway in the first half of 2018. In addition to bus assembly, BYD plans an after-sales unit for maintenance and repairs, as well as a logistics center for spare parts. In the longer term, a test center for batteries could be added.

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 is now worth roughly $1.77 billion.

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

© 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
Lubrizol

Lubrizol Breaks Ground on Polyisobutylene Unit in Texas

(BRK.A), (BRK.B)

Berkshire Hathaway’s Lubrizol Corporation has broken ground on the construction of a new polyisobutylene (PIB) unit at its Deer Park, Texas facility.

The facility is being developed as part of Lubrizol’s previously announced technology license agreement with Daelim Industrial.

Commenting on the new unit, Dan Sheets, president of Lubrizol Additives, states “With this significant investment, Lubrizol intends to meet future customer demands, as well as be fully prepared for anticipated performance upgrades in lubricants and fuels.”

The new unit is expected to be fully operational in the first half of 2019. It will provide Lubrizol with capacity for highly reactive polyisobutylene (HR PIB), a key raw material for next-generation dispersants and lubricants.

© 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
BNSF

BNSF to Build $2.3 million facility in Minnesota

(BRK.A), (BRK.B)

BNSF Railway has announced that it will build a $2.3 million facility in Dilworth, Minnesota. The new facility will replace its existing facility.

The new facility will enable the company to hold meetings and on-site training, as it will be significantly larger than its current location.

Construction will begin this spring with completion planned by the fall of 2017.

© 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
Fruit of the Loom

Rupa to Bring Fruit of the Loom Brand to India

(BRK.A), (BRK.B)

The Fruit if the Loom brand is coming to India in a deal that will bring extensive royalties to Berkshire Hathaway and little risk.

Rupa and Company, the number one knitwear maker in India, has struck a deal with Berkshire’s Fruit of the Loom to license the brand for India.

Rupa, which has the capacity to make over 700,000 pieces of knitwear a day, will pay a fixed royalty for the right to manufacture Fruit of the Loom branded products.

Siddhant Agarwal, VP-Business Development & Acquisitions at Rupa and Company, told CNBC-TV18 that the company plans to debut the Fruit of the Loom brand in September or October 2017.

Rupa has received broad recognition for its success in the knitwear industry, including receiving the Best Corporate Brand Award by The Economic Times at ‘The Economic Times Best Corporate Brands Summit 2015’ held in Mumbai.

The company’s shares are listed at NSE and BSE.

© 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
Lubrizol

Lubrizol Buys Government’s 24% stake in India Joint Venture

(BRK.A), (BRK.B)

The state-run Indian Oil Corp has agreed to sell a 24 percent stake in a joint venture to the US-based partner Lubrizol Corporation.

The transaction will enable Lubrizol to take over the government’s stake in Lubrizol India Pvt Ltd, according to a government statement. When completed, Lubrizol’s ownership in the company will reach 74%.

The move comes as the Indian government plans to divest its interest in public companies.

“The sale will enable IOC to have long term association with its joint venture partner and … Lubrizol India Pvt Ltd (LIPL) to have access to the latest global additive technologies developed by Lubrizol Corporation, USA,” the statement said.

© 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.