Berkshire Hathaway Completes Marmon Deal
Berkshire Hathaway Completes Marmon Deal
Jason Sandefur
Warren Buffet’s Berkshire Hathaway completed its acquisition of 60% of the Marmon Group for $4.5 billion. The remaining 40% of Marmon will be acquired through staged acquisitions over the next five to six years.
Marmon fastener holdings include manufacturers Pan American Screw of Conover, NC; Robertson Inc. of Milton, Ontario, Canada; Nylok Corp. of Macomb, MI; Specialty Bolt & Stud Inc. of Milton, Ontario, Canada; Deerwood Fasteners International in Conover; Atlas Bolt & Screw Co. of Ashland, OH; and fastener distributor SureDrive Inc. of San Francisco.
Announced on Christmas, the acquisition drew widespread attention for more than just its size. The decision to buy Marmon reportedly occurred within a two-week span in early December.
The deal reportedly represents Buffet’s largest acquisition outside the insurance industry.
Between 2002 and 2007 Marmon’s operating income more than tripled. During that same period operating margins increased from 4.9% to 12.4%.
The Marmon Group is a $7 billion international association of more than 125 manufacturing and service businesses that operate independently within diverse business sectors, including industrial fasteners, safety products and metal fabrication. Member companies employ approximately 21,000 people and operate more than 250 facilities around the world. Web: marmon.com �2008 FastenerNews.com
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