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McLane

McLane Furthers Focus on Diversity with Expansion of SPARK Initiative

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, has announced the expansion of SPARK, a company-wide initiative focused on identifying workplace diversity opportunities through a variety of programs, community outreach and lending support to nationally recognized diversity-focused annual events.

With the expansion, McLane furthers its commitment of creating and maintaining a diverse and inclusive workforce to foster creativity and innovation in order to better understand evolving trends and drive results for customers.

As part of this expansion, McLane has collaborated with Colorado Division of Vocational Rehab (DVR), Workforce Boulder County and Easter Seals on a Workplace Diversity Hiring pilot program that provides real world work experience to individuals with disabilities.

Participants of the Workplace Diversity Hiring program are referred by DVR and Workforce Boulder County to participate in a six-week training program that combines classroom and on-the-job training. The two weeks of classroom instruction includes soft-skills training, such as teamwork and problem solving taught by Easter Seals. The remaining four weeks of the program are located at the McLane Western Distribution Center, where participants will be exposed to real-world work experience as they integrate and work alongside McLane teammates. During the experiential training a job coach accompanies participants, ensuring they receive proper training based on their individual abilities. The second training session is scheduled to kick off in early October.

Other programs currently deployed under the SPARK initiative include:

Hiring Our Heroes (HOH): Because McLane deeply values the sacrifice and driven work ethic U.S. veterans and military embody, the company embarked on a partnership with Hiring Our Heroes in 2015. Initiated by the U.S. Chamber of Commerce Foundation, the 12-week Corporate Fellowship program strives to make the transition to civilian careers easier and more seamless for military veterans.

McLane works with other HOH partners Workforce Solutions and the Texas Veterans Commission to source active duty military personnel for onsite project work lasting 11 weeks. To date, McLane has successfully hosted four fellows and has hired three. With this partnership, McLane is able to tap into the skills, drive and value our veterans have to offer.

Operation Impact Network of Champions: To further expand its veteran reach and talent with expertise in logistics, information technology, security, maintenance and business operations, McLane became part of the Operation Impact Network of Champions. This program was started by Northrop Grumman, a Department of Defense contractor, and sets out to assist wounded service members injured during the war on terror with transition from military to civilian careers.

“McLane recognizes the value of a diverse workforce to include people with disabilities from diverse backgrounds, and with highly-trained military expertise. The launch of SPARK deeply aligns with McLane’s beliefs and values of honesty, integrity, and high Christian principles, and further demonstrates our commitment to diversity inclusion,” said Jennifer Rojas, EEO compliance, and inclusion manager at McLane. “It’s been a great experience working jointly with the many exceptional partners we’ve identified for each program, and we look forward to adding great talent to build out the McLane team and making people’s lives better.”

Looking ahead with SPARK, McLane plans to include additional disability training programs under the Workplace Diversity Hiring Program, as well as seek out opportunities that bring greater impact to the company, its teammates and the communities it serves.

© 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.

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Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices Adds Managing Director for Europe, Middle East and Africa

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices has announced that Mitchell Lewis will represent the real estate brokerage network as managing director, EMEA.

Lewis will oversee franchise development and operations in key markets throughout Europe, the Middle East and Africa.

According to a statement by Berkshire Hathaway HomeServices, Lewis brings vast international franchise sales and operations experience to his position, first at Cendant Corporation where he managed the global expansion and deal negotiations for Century 21, Coldwell Banker, Coldwell Banker Commercial and ERA. For the next decade at Realogy Corporation, he grew the global presence and enhanced the processes and systems for the same brokerage networks as well as Sotheby’s International Realty.

Most recently, Lewis served as the managing director of Asia Pacific for Christie’s International Real Estate, where he established the network’s operational presence and helped lead the brand’s global development. He also founded Munich-based Counterparts Advisory LLC to consult for consumer brands seeking franchise expansion and operational guidance around the world.

“Mitch Lewis is exactly the right professional to help us expand Berkshire Hathaway HomeServices,” said Peter Turtzo, SVP of International Operations. “He is an authority on international franchising having generated success at every turn. His extensive experience and professional acumen are true assets; he will indeed help us take our network global, far beyond its current presence in the United States.”

Lewis responded: “I am honored by the opportunity to assist Berkshire Hathaway HomeServices in its global expansion. The Berkshire Hathaway name is respected around the world, which gives Berkshire Hathaway HomeServices an advantage. I’m eager to explore target markets and work with franchisee candidates to see how the brand can help them grow and enhance profitability of their brokerage businesses.”

Berkshire Hathaway HomeServices announced international expansion plans in May with the simultaneous launch of a powerful, new property search platform on its website, www.berkshirehathawayhs.com. Global shoppers of U.S. real estate may translate the site in 10 languages, and their property searches yield all listings in any city serviced by a Berkshire Hathaway HomeServices franchisee. The network also initiated a listing syndication program that broadcasts its U.S. franchisees’ listings to real estate websites worldwide.

“These resources open gateways to the world for Berkshire Hathaway HomeServices’ U.S. affiliates long before a global franchise sales effort begins,” said Lewis. “This demonstrates careful planning and foresight by the brand to do things right the first time. In fact, Berkshire Hathaway HomeServices has exhibited extreme levels of due diligence, prudence and patience in its international expansion strategy.”

Lewis said his initial target markets will include major financial hubs along with destination and feeder markets throughout the EMEA region that exhibit stability in the property sector and where Berkshire Hathaway’s corporate name recognition runs high.

Berkshire Hathaway HomeServices CEO Gino Blefari welcomed Lewis in his new role.

“Mitch is a globally astute executive who knows international franchise development and operations from all angles, and further understands the diligence we need to uphold the integrity of our brand name as we affiliate with leading real estate brokerages abroad,” he said. “He’s also an accomplished consultant who helped shape our global strategy and can guide franchisees to maximize their growth potential. We’re proud and confident knowing Mitch will be helping to expand our brokerage network.”

© 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.

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GEICO Insurance

GEICO Expands Ridesharing Coverage to 10 More States

(BRK.A), (BRK.B)

To meet the growing consumer appetite for Uber, Lyft, Split and other on-demand services, GEICO has rolled out its ridesharing product to 10 more states (Alabama, Idaho, Kansas, Delaware, Maine, Tennessee, Wisconsin, Minnesota, Missouri and North Dakota). Coverage is already available in 24 states and the District of Columbia.

“The growing demand for ridesharing services is rapidly reshaping the country’s transportation landscape,” said Othello Powell, GEICO’s director of commercial lines. “As more and more consumers latch on to its popularity, we will continue to offer on-demand drivers the best insurance product at the lowest price to address their needs.”

Not long ago, rideshare drivers didn’t have many options when it came to auto insurance. Most policies only covered the portion of the trip that drivers were signed in to a ridesharing app and offered limited coverage options to one specific transportation network company.

GEICO’s ridesharing insurance product rolled onto the market last year, addressed the specific insurance needs of on-demand drivers. GEICO combined the coverage options of two separate policies into a single policy, eliminating the coverage gap between ridesharing and personal use whether or not if the driver is logged into the transportation network company’s app. GEICO also offers drivers the flexibility to work with multiple transportation network companies.

Powell noted that GEICO is constantly looking at ways to keep pace with the evolving nature of ridesharing services. “It makes a world of difference when we receive positive feedback from drivers who say GEICO is listening and responding to their needs.”

GEICO’s ridesharing product is now offered through the company’s Commercial division at a price typically much lower than taxi and commercial rates.

© 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.

Categories
Dairy Queen

Dairy Queen Plans Major Expansion in Upstate New York

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The Buffalo Niagara area of Upstate New York could see as many as 100 new Dairy Queen restaurants over the next decade.

All the locations would be Dairy Queen’s Grill & Chill restaurants, and Dairy Queen is currently looking for local franchise operators in the Upstate area.

In March, 2016, Dairy Queen announced plans to rollout 60 new stores in nearby Massachusetts. Potential locations include the towns of Taughton, Peabody, Burlington, Plymouth, and the city of Worcester.

For more information read a Mazor’sEdge special report on Dairy Queen.

© 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.

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Minority Stock Positions Stock Portfolio

London Begins Pure Electric Bus Service Using BYD-Powered Buses

(BRK.A), (BRK.B)

Europe’s largest fleet of electric buses are now in service in London. The 51 single-decker buses were built in Britain as part of a partnership between China’s BYD Company (electric powertrain technology and batteries) and Alexander Dennis Limited (ADL).

The 51 buses are operated by Go-Ahead London from its Waterloo garage, servicing two Transport for London (TfL) routes – 507 and 521.

The order for the BYD ADL Enviro200EV buses follows a three-year trial that proved the buses could consistently run a 16-hour shift without a recharge. The long range of these vehicles is due to BYD’s iron-phosphate battery technology and the light aluminum body manufactured by ADL in Falkirk, Scotland.

The Mayor of London, Sadiq Khan, said: “It’s vital that we act now to clean-up our capital’s toxic air and do everything we can to help prevent the thousands of deaths it causes each year. I’ve set out a comprehensive plan to improve our air, and the transformation of London’s bus fleet will play a key role in making our transport cleaner and healthier.

“These first two electric bus routes right through the heart of London are another step towards the end of conventional diesel buses on our roads. This will deliver extensive air quality benefits and position us as a true world leader in adopting ultra low emission vehicle technology.”

The introduction of this environmentally friendly bus fleet to London will contribute towards improved air quality for its residents as the buses are estimated to reduce carbon dioxide emissions by 700 tons a year.

In a trial operation, BYD is also testing the world’s first pure electric double decker buses, five of which are in service with London operator Metroline on behalf of TfL. Future versions will be built in partnership with ADL.

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.

© 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.

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Berkshire Hathaway Energy

MidAmerican Energy Places First Order With Vestas for Wind Turbines

(BRK.A), (BRK.B)

Denmark-based Vestas has received a firm and unconditional order from MidAmerican Energy Company for 214 MW of Production Tax Credit (PTC) qualifying V110-2.0 MW turbine components.

Vestas, the only global energy company dedicated exclusively to wind energy, will supply up to 1,000 V110-2.0 MW wind turbines for MidAmerican Energy’s new Iowa 2 GW Wind XI farm.

The turbines will be installed between 2016 and 2019, and Vestas will also receive a five-year Active Output Management 4000 service agreement that includes extension options for up to 10 years.

“Wind energy helps us keep prices stable and more affordable for customers. It provides jobs for Iowans and other economic benefits for our customers, communities and the state. Wind energy also contributes to a cleaner environment for everyone,” said Bill Fehrman, president and CEO, MidAmerican Energy. “We are proud to expand wind generation in Iowa. And, our customers appreciate that we’re doing it without asking for an increase in rates to pay for it.”

“With this order, MidAmerican positions itself to secure the full value of the PTC for the Wind XI project, and takes the next step in delivering low-cost, domestic wind energy to its customers. As the only state to generate more than 30 percent of its energy from wind, Iowa leads the country in delivering wind energy’s economic and environmental benefits to its communities, and it’s an honor to be a part of the largest wind project in the state’s history.” said Chris Brown, President of Vestas’ sales and service division in the United States and Canada.

© 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.

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Todd Combs and Ted Weschler

Todd Combs Joins Board of JPMorgan Chase

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(BRK.A), (BRK.B)

One of Berkshire Hathaway’s top stock pickers, Todd Combs, has joined the board of JPMorgan Chase/

JPMorgan Chase elected Todd Combs, 45, a director of the company, effective September 19, 2016.

Mr. Combs’ appointment to a Board Committee will be announced when determined. He was named a director of the company’s JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A. subsidiaries.

Combs will continue to work at Berkshire Hathaway, which he joined in 2010. Prior to that, he was Chief Executive Officer and Managing Member of Castle Point Capital, an investment partnership he founded in 2005. In that role, he managed capital for endowments, family foundations and institutions. Earlier in his career, he was an analyst for Florida’s state financial regulator, and he analyzed risks for insurer Progressive Corp.

“Todd Combs is an extraordinary leader, investor and thinker, with a deep understanding of finance and business,” said Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase. “We’re pleased he has agreed to serve on our Board of Directors, and our company and our Board will benefit from his wisdom and judgment,” Dimon added.

“I deeply appreciate this opportunity with JPMorgan Chase and look forward to working closely with my new colleagues on the Board of Directors,” said Todd Combs. “I’m pleased to join a team committed to serving the interests of customers, clients and shareholders.”

© 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.

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Acquisitions Marmon Group

Marmon Acquires Pasta Equipment Maker

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Berkshire Hathaway’s Marmon Food, Beverage & Water Technologies Company has acquired Dominioni Punto & Pasta S.r.l., a leading Italian supplier of commercial pasta equipment, by Marmon Pasta Solutions S.r.l.

Terms of the acquisition were not disclosed.

Founded in 1968 by Pietro Dominioni, the family-run business designs and produces professional pasta equipment for the restaurant, hospitality, and catering markets, as well as high-volume pasta manufacturers. The business will continue to operate under the Dominioni brand name and its operations will remain based in Lurate Caccivio (Como). Fabrizio Dominioni, son of the founder, will continue to manage the business.

Fabrizio Dominioni said: “I am pleased that my family’s business is now part of Marmon and Berkshire Hathaway. Marmon is a strong, successful company and a global leader in the foodservice equipment industry. Our new home within Marmon will enhance our competitive position and our opportunities for growth now and in the future.”

The acquisition is Marmon’s second this year of an Italy-based foodservice equipment company. In June, Marmon Italia acquired Angelo Po of Carpi (Modena).

Angelo Po designs and manufactures professional kitchen equipment including horizontal and vertical cooking products and food preservation systems for caterers and restaurants in Europe, Asia, and North America. Dominioni and Angelo Po are both part of the Restaurant & Catering Technologies Sector within Marmon Food, Beverage & Water Technologies Company.

Fabrizio Valentini, President and CEO of Marmon Food, Beverage & Water Technologies Company, said: “Dominioni is an important addition to our organization. With Angelo Po, it will significantly contribute to our company’s growth, both geographically and technologically, as we continue to invest in the worldwide foodservice, restaurant, and catering market.”

Massimo Aleardi, Sector President of Marmon Restaurant & Catering Technologies, added: “We are excited for Dominioni to join our group. Dominioni has established high standards for quality, reliability, and service. Its products, which also complement Angelo Po’s portfolio, are well regarded in the foodservice industry. Its innovative equipment solutions help meet the growing demand for fresh food while also enabling more efficient production. We look forward to building on Dominioni’s excellent reputation not only throughout Europe, but also globally.”

© 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.

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Berkadia

Berkadia Negotiates 2,826-Unit Portfolio Sale

(BRK.A), (BRK.B)

Berkadia has announced that it successfully negotiated the sale of the 2,826-unit Star Portfolio consisting of 11 separate apartment communities located in four states – Maryland, Pennsylvania, North Carolina and South Carolina. The purchase price for these assets was in excess of $300 million.

Berkadia’s Senior Managing Directors Scott Melnick and David Oakley negotiated the transaction on behalf of the buyer, Morgan Properties JV, an affiliate of Morgan Properties, one of the nation’s largest multi-family owners. Deutsche Bank represented the seller.

All of the Star Portfolio properties are located in very desirable, high-barrier submarkets in close proximity to major development hubs and public transit. Morgan Properties will execute an extensive, multimillion dollar value-add repositioning plan in aggregate to enhance the value of each property, and the renovation strategy will include premium kitchen and bath renovations and top-of-the-line amenity upgrades.

The six suburban Maryland apartment communities include Silver Spring Station, Westerlee, The Willows, St. Mary’s, Taylor Park and Willowood; in Pennsylvania, The Greens at Westgate; in South Carolina, The Waterway and Forest Oaks; and in Raleigh, North Carolina, Falls Creek and Heather Park.

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 was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013.

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.

© 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.

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Lubrizol

Lubrizol’s Particle Sciences Signs Deal with Glenmark for Cancer Drug

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Particle Sciences, a division of Berkshire Hathaway’s Lubrizol, has signed a deal with Glenmark Pharmaceuticals for the development and marketing of a generic version of the cancer drug Abraxane.

A Glenmark press release stated “The company has entered into a strategic development, license and commercialisation agreement with Particle Sciences Inc to develop and market a generic version of Celgene’s Abraxane product – paclitaxel protein (albumin)-bound particles for injectable suspension.”

Particle Sciences will develop the product exclusively for Glenmark, which is making a generic version of Celgene’s Abraxane, a drug that had worldwide sales in 2015 of $967 million.

Abraxane is prescribed for the treatment of breast cancer after failure of combination chemotherapy for metastatic disease or relapse within 6 months of adjuvant chemotherapy.

“The partnership is a significant development in Glenmark’s complex generics strategy and we are pleased to collaborate with Particle Sciences given their strong technical capabilities and understanding of particulate injection products. This is a challenging product to develop and we expect it to remain a limited competition opportunity,” said Glenmark Pharmaceuticals’ Robert Matsuk, president – North America and global API.

Under the terms of the agreement, Particle Sciences will receive milestone payments during various stages of the product’s development from Glenmark, including royalties on sales.

About Particle Sciences

Acquired by The Lubrizol Corporation in 2015, Particle Sciences is a leading contract drug development and manufacturing organization with a comprehensive suite of services for the formulation, analysis and production of complex drug delivery solutions.

© 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.