This just in from Winespiritsdaily.com. If you aren’t signed up, you need to change that. It has great information about the industry.
The site said that “Warren Buffett’s Berkshire Hathaway issued an official statement today confirming that its subsidiary McLane Company (a grocery distributor) has indeed entered into an agreement to acquire Kahn Ventures, parent company of Empire Distributors, Inc and Empire Distributors of North Carolina, Inc.
….The current executive team will stay intact and Empire will continue to operate out of its existing facilities and in 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,” according to a company statement.”
Winespiritdaily also reported that “Even more interesting, Berkshire Hathaway chief Warren Buffett opened the door for future acquisitions of distributors: “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.”
I think this is fascinating news. I wonder who else might eventually be a target. The speculation begins. What will it mean for the business? It will certainly be great for Empire but I do wonder if it is going to be even tougher for the little guy or the medium gal….
In a former life, I used to be a financial reporter so this stuff interests me for a whole host of reasons. I’ve always been a Buffett fan. Yes he is a successful investor but his values always seemed to be in the right place at the same time, no mean feat and what a rarity these days.