Jason Sandefur

Warren Buffet’s Berkshire Hathaway will purchase 60% of the Marmon Group for $4.5 billion, the billionaire investor announced, with the remaining 40% to 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 Ontario, Canada; Deerwood Fasteners International in Conover; Atlas Bolt & Screw Co. of Ashland, OH; and fastener distributor SureDrive Inc. of San Francisco.
“Our transaction was done just the way (family leader Jay Pritzker) would have liked it to be done – no consultants or studies,” Buffet stated, noting that “the decision to purchase and work out the details of this transaction was done without delay.”
Announced on Christmas, the acquisition drew widespread attention for more than just its size. The decision to make buy Marmon Group reportedly occurred within a two-week span in early December.
“For Mr. Buffett, the deal represents his largest acquisition outside the insurance industry and suggests that he is finally finding some deals he can get excited about,” the New York Times noted.
The Marmon Group is a $7 billion international association of more than 125 manufacturing and service businesses that operate independently within diverse business sectors. These sectors are Industrial Products, including metal fasteners, safety products and metal fabrication; Wire & Cable, serving energy related markets, residential and non-residential construction and other industries; Transportation Services & Engineered Products; Highway Technologies; Distribution Services for specialty pipe and tubing; Flow Products for the plumbing, HVAC/R, construction and industrial markets; Construction Services; Water Treatment equipment; and Retail Services.
Member companies employ approximately 21,000 people and operate more than 250 manufacturing, distribution and service facilities, primarily in North America, the UK, Europe and China.
Crain’s Chicago Business lists the Marmon Group as Chicago’s largest privately held company.
Between 2002 and 2007 Marmon’s operating income more than tripled. During that same period operating margins increased from 4.9% to 12.4%.
“(This transaction) will allow Marmon to thrive under its existing management team and continue implementing our management philosophy,” stated Marmon consultant and former CEO John Nichols. Web: marmon.com �2008 FastenerNews.com