OMAHA, Neb.—Warren Buffett’s company is acquiring a major stake in Pilot Flying J truck stops and it will become a majority owner within about five years.
The ubiquitous truck stops, 750 of them in 44 states and Canada, make up the 15th largest private company in the U.S., according to Forbes, with revenue of almost $20 billion per year.
Berkshire Hathaway and Pilot Travel Centers announced the deal early Oct. 3. Initially, Berkshire will buy 38.6 per cent of the company that runs 750 truck stops across 44 states and Canada, but in 2023 that will increase to 80 per cent.
Financial terms weren’t disclosed, so it wasn’t immediately clear how much of Berkshire’s roughly $100 billion in cash will be used.
Pilot Flying J, which is run by Cleveland Browns owner Jimmy Haslam, has been under scrutiny in recent years because of a diesel fuel rebate scam that led to criminal charges against several executives.
The Knoxville, Tennessee, company paid an $85 million settlement with some of the defrauded customers as well as a $92 million penalty to the government.
Haslam said Berkshire is a good fit for his family business because of its reputation as a long-term owner that largely lets companies run themselves. The deal will also provide financial flexibility that will let the Haslam family reduce its stake and another minority owner will sell b 2023.
