Oct. 04--ANDERSON -- Billionaire investor Warren Buffett announced a deal to acquire a majority control of truck-stop chain Pilot Flying J.
Berkshire Hathaway Inc., owned and controlled by Buffett, announced Tuesday a deal originally giving the investment company a significant minor investor in Pilot Travel Centers LLC., with plans to eventually own a majority share in the company.
In the agreement, Jimmy Haslam will remain CEO, and Pilot Flying J President Ken Parent and the company's management team will also remain in place through 2023. The company's headquarters will remain in Knoxville, Tennessee.
Pilot Flying J is the largest operator of travel centers in North America, with more than 27,000 team members, 750 locations across the U.S. and Canada, and more than $20 billion in revenues.
Three Pilot Travel Centers are located in Madison County, two in Daleville at the Interstate 69 ramps and one at the intersection of 69 and Indiana 13 near Ingalls.
Under the terms of the agreement, Berkshire will acquire a 38.6 percent equity stake in Pilot Flying J. The Haslam family will continue to hold a majority interest with 50.1 percent ownership in the Company and FJ Management, Inc., owned by the Maggelet family, will retain 11.3 percent ownership until 2023.
In 2023, Berkshire will become the majority shareholder by acquiring an additional 41.4 percent equity stake and the Haslam family will keep 20 percent ownership and remain involved with Pilot Flying J, according to a press release.
"Pilot Flying J is built on a longstanding tradition of excellence and an unrivaled commitment to serving North America's drivers," said Buffett, chairman, president and CEO of Berkshire Hathaway.
Pilot Flying J pointed to milestones in the company's growth, including the merger of Pilot with Flying J, as well as transactions with Marathon Ashland Petroleum, Williams, Speedway, Mr. Fuel and Speedway-Wilco as having helped to grow the company's network.
James Haslam II, founder and chairman, Pilot Travel Centers LLC, said, "Berkshire Hathaway's investment in Pilot Flying J is a testament to our exceptional team members and their dedication that has made Pilot Flying J the great company it is today. We are committed to continuing to make a difference in Tennessee, supporting and giving back to our communities here at home."
(c)2017 The Herald Bulletin (Anderson, Ind.)
Visit The Herald Bulletin (Anderson, Ind.) at www.theheraldbulletin.com
Distributed by Tribune Content Agency, LLC.
© Tribune Content Agency, source Regional News