McLane Company to Acquire Kahn Ventures, Inc.March 23, 2010
Berkshire Hathaway Inc. announced that its subsidiary, McLane Company, has entered into an agreement to acquire Kahn Ventures, Inc., parent company of Empire Distributors, Inc and Empire Distributors of North Carolina, Inc. Kahn Ventures, Inc. and its subsidiaries are wholesale distributors of distilled spirits, wine and beer in the state of Georgia and North Carolina. The acquisition is subject to customary closing conditions, including the termination of the applicable waiting period under the Hart-Scott-Rodino Act.
Empire will continue to be run in the same prudent and professional manner as it has been for the past 70 years, led by the current executive management team, and operating out of its existing state-of-the art facilities and in all the same markets. The only change to Empire's business will be new access to enhanced resources, operational best practices and intellectual capital that will provide significant upside and opportunity for increased levels of success for Empire, its suppliers and the brands it distributes.
Warren Buffett, Berkshire's Chairman and Chief Executive Officer, said that this acquisition is based on a shared vision of Berkshire, McLane and Kahn of developing new opportunities to innovate, grow and lead the beverage industry. "We are excited about the opportunity to have Empire become part of our portfolio of outstanding businesses. We expect that the Empire acquisition will provide us with a solid platform for potentially acquiring other similar high quality wholesale distributors."
McLane is a $32 billion supply chain services leader, providing grocery and foodservice supply chain solutions for thousand of c-stores, mass merchants, drug stores and military locations, as well as thousands of chain restaurants throughout the United States. With 38 distribution centers and one the nation's largest private fleets, the company optimizes the purchase, flow and sale of products from thousands of suppliers to more than 60,000 locations.
Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.