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Mergers & Acquisition Draft

Mergers & Acquisition Assignment
Berkshire Hathaway
Group - B
Batch - 2020-2023’
Submitted to: Prof. Arpita Gurbaxani
Sr. No
Roll. No PRN
Task Done
Aansh Shah
NV Energy Acquisition
Balraj Mehta
H.J. Heinz Acquisition
Naman Maheshwari
Precision Castparts Acquisition
Ipsita Ladia
Duracell Acquisition
Sarthak Darekar
Berkshire Hathaway Introduction and
Mitali Mishra
Merger Types
Mergers History
Merger waves with all acquisitions
Introduction of Berkshire Hathaway
Types of Acquisition
Merger & Acquisition waves history
Berkshire Hathaway & Duracell
Berkshire Hathaway & H.J. Heinz company
Berkshire Hathaway & Precision Castparts Corp
Berkshire Hathaway & NV Energy
Page No.
Introduction to Berkshire Hathaway: Warren Buffett's investing arm is Berkshire Hathaway, an American holding corporation located in
Omaha, Nebraska. It was one of the largest firms in the United States in terms of revenue in the early
twenty-first century. The firm was also noted for its high stock price and its small headquarters
personnel (about 25 people). Berkshire Hathaway originated from two Massachusetts textile companies:
Hathaway Manufacturing Company (founded in 1888) and Berkshire Cotton Manufacturing Company
(incorporated 1889).
Types of Acquisitions:
Merger & Acquisition history
All acquisitions under Warren Buffet’s Berkshire Hathaway: During Third Wave
1967-100% of National Indemnity Group for $8.6 million.
1970-Cornhusker Casualty Company now Berkshire
Hathaway Homestate Companies
1972-67.30% of See’s Candy for $25 million
1972-100% of Wesco Financial for $127 million
During Fourth Wave
1986-84% of Scott Fetzer
1986-100% of Fechheimer Brothers for $315 million
1988-80% of Borsheims Jewelry
1991-H.H. Brown
1992-82% of Central States Indemnity
During Fifth Wave
1995-100% of GEICO for $2.76 billion
1995-Helzberg Diamonds
1995-R.C.Willey Home Furnishings
1996-Kansas Bankers Security for $75 million.
1996-Flight Safety International for $1.5 billion
1997-International Dairy Queen for $590 million
1997-Star Furniture
1998-100% of General Re for $22 billion
1998-Netjets for $725 million.
1977-100% of The Buffalo News for $32.5 million
1979-Precision Steel Warehouse
1983-90% of Nebraska Furniture Mart for $60 million
During Sixth Wave
During Seventh
1999-MidAmerican Energy for $1.25 billion
1999-Jordan’s Furniture
2000-United States Liability Insurance Group
Ben Bridge Jeweler
Benjamin Moore Paint for $1 billion
CORT Business services for $386 million
Johns Manville Corp for $1.8 billion
Justin Industries for $570 million
2000-Shaw Industries
2001-Larson Juhl
● MiTek Inc for $500 million
XTRA for $590 million
100% of Fruit of Loom for $835 million
CTB International for $180 million
Garan for $$270.6 million
The Pampered Chef
2003-Clayton Homes for $1.7 billion
● McLane Company for $1.45 billion
2005-Medical Protective for $825 million
● Applied Underwriters
Business Wire
Forest River for $800 million
100% of Iscar for $6.05 billion
2007-Boat America Corporation
● Richline Group
● Russell Corporation for $600 million
● Marmon Group.
● 2009-100% of Burlington Northern Santa Fe for $44 billion
● 2011-100% of Lubrizol for $9.7 billion
Omaha Herald for $150 million
2012-Media General for $142 million
● Prudential Connecticut
● Oriental Trading Company
2013-50% H.J.Heinz for $12.25 billion
● 100% of NV Energy for $5.6 billion
Duracell Inc.
2014-Van Tuyl Group now Berkshire Hathaway Automotive
● Charter Brokerage
● Duracell for $4.7 billion
2015-Detlev Louis Motorrad-Vertriebs GmbH
● Precision Castparts for $37.2 billion
2017-8.60% in Pilot Flying J.
About H.J. Heinz Company
H.J. Heinz Company is one of the world’s leading marketers and producers of healthy, convenient and
affordable foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. Heinz
provides superior quality, taste and nutrition for all eating occasions whether in the home, restaurants,
the office or on-the-go. The American food processing company headquartered at One PPG Place in
Pittsburgh, Pennsylvania was founded by Henry J. Heinz in 1869. Heinz manufactures thousands of
food products in plants on six continents, and markets these products in more than 200 countries and
Major Products
Heinz is a global family of leading branded products, including Heinz Ketchup, sauces, soups, beans,
pasta and infant foods (representing over one third of Heinz’s total sales), Ore-Ida potato products,
Weight Watchers Smart Ones entrées, T.G.I. Friday’s snacks, and Plasmon infant nutrition. Heinz is
famous for its iconic brands on six continents, showcased by Heinz Ketchup, The World’s Favourite
Precision Castparts (PCC) was founded by Joseph Buford Cox on April 1, 1953. Cox was owner of
Oregon Saw Chain and in 1949 had started a casting operation with assistant general manager Ed
Cooley also working on the project. In 1953 Cox separated the two companies and PCC was formed,
moving into a new larger facility in 1955, and incorporating the following year with Ed Cooley as one of
the owners.
Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and
products. It serves the aerospace, power, and general industrial markets. PCC is a market leader in
manufacturing complex structural investment castings and forged components for aerospace markets,
machined airframe components, and highly engineered, critical fasteners for aerospace applications, and
in manufacturing airfoil castings for the aerospace and industrial gas turbine markets. PCC also is a
leading producer of titanium and nickel superalloy melted and mill products for the aerospace, chemical
processing, oil and gas, and pollution control industries, and manufactures extruded seamless pipe,
fittings, and forgings for power generation and oil and gas applications.
NV Energy