Warren Buffett’s Berkshire Hathaway to buy Charter Brokerage
13 Dec 2014
Warren Buffett's investment arm Berkshire Hathaway Inc yesterday struck a deal to buy oil and chemical industry logistics provider Charter Brokerage from private equity firm Arsenal Capital Partners.
Berkshire Hathaway did not disclose the financial terms of the deal, but analysts had recently valued Charter Brokerage at around $500 million.
The latest deal comes less than a month after Berkshire Hathaway acquired Procter & Gamble Co's Duracell battery unit in a stock-swap deal worth $3 billion. (See: Warren Buffett to buy Duracell from P&G in a stock swap deal worth $3 bn)
Founded in 1994, Charter Brokerage is a leading global trade services company providing customs, import, export, drawback and related services. It provides full-service and compliance-focused customs services to importers and exporters in the US and Canada.
With expertise in the establishment and administration of foreign-trade zones and bonded warehouses for the purpose of reducing or eliminating the duties and fees applicable to imported goods, Charter Brokerage recovers duties, taxes and fees for its clients within the complex US rules that govern the payment of drawback.
The Norwalk, Connecticut-based company serves the petroleum, airline, chemicals, petrochemicals, biofuels, industrial machinery and equipment, metals and food producing industry, among others.
Warren Buffett, chairman and CEO of Berkshire Hathaway said, ''Charter Brokerage is a high quality business with consistently strong financial performance that fits well within Berkshire Hathaway.''
''During our partnership we entered new markets and expanded into further service lines through organic initiatives and acquisitions. Charter is a great fit with Berkshire Hathaway and we wish them further success,'' said Jeffrey Kovach, co-founder and partner of Arsenal.
