Berkshire Hathaway Inc. ( BRK.A, BRK.B) announced Tuesday that the company is taking a 38.6 percent equity stake in Pilot Travel Centers, the largest travel center operator in North America. The Haslam family will maintain its 50.1 percent majority ownership stake in the company, and owner Jimmy Haslam will maintain his position as CEO.
As part of the agreement, Berkshire will acquire an additional 41.4 percent equity stake and become majority shareholder in 2023.
[Read: Why Warren Buffett Loves Buy-and-Hold Stocks.]
Pilot operates more than 750 travel centers in the U.S. and Canada, including popular Flying J truck stops. According to the company’s press release, Berkshire’s funding will help the company expand its market presence.
Berkshire is owned by America’s pre-eminent value investor, Warren Buffett. In a statement, Buffett praised Pilot’s current management team, which will remain in place following the deal.
“Jimmy Haslam and his team have created an industry leader and a key enabler of the nation’s economy,” Buffett says. “The company has a smart growth strategy in place and we look forward to a partnership that supports the trucking industry for years to come.”
Buffett hasn’t done as much buying as usual so far in 2017. In the most recent quarter, Berkshire took relatively modest new positions in Synchrony Financial (SYF) and Store Capital Corp. ( STOR). Buffett also exercised warrants Berkshire has held since 2011 to purchase 700 million common shares of Bank of America Corp. ( BAC).
On Tuesday, Buffett told CNBC he’s also been holding off on selling stocks until he sees what happens with Republicans’ efforts for tax reform.
“I would feel kind of silly if I realized $1 billion worth of gains and paid $350 million in tax on it if I just waited a few months and would have paid $250 million,” Buffett says.
[See: 10 Ways You Can Invest Like Warren Buffett.]
Pilot is privately held. Berkshire’s largest public investments include a $25.9 billion stake in Wells Fargo & Co. ( WFC), a $25.3 billion stake in Kraft Heinz Co. ( KHC) and a $20 billion stake in Apple ( AAPL).
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Warren Buffett Takes Huge Stake in Pilot Travel Centers originally appeared on usnews.com
