True to form, Warren Buffett has not stopped putting his cash to work. Berkshire Hathaway Inc (BRK.a. & BRK.b), the billionaire investor’s investment company, said on Monday that its McLane Co unit has agreed to buy Kahn Ventures Inc, a wholesale distributor of distilled spirits, wine and beer in Georgia and North Carolina. The terms of the takeover were not disclosed. The acquisition was announced fewer than six weeks after Berkshire completed a $26.5 billion takeover of the railroad company Burlington Northern Santa Fe Corp, its largest acquisition ever.
Berkshire said the acquisition will give Kahn and its Empire Distributors Inc and Empire Distributors of North Carolina Inc units access to greater resources. It said McLane is a food service distributor with 38 distribution centers that serve more than 60,000 stores and restaurants.
“We expect that the Empire acquisition will provide us with a solid platform for potentially acquiring other similar high quality wholesale distributors,” Buffett, the world’s third-richest person, said in a statement. Clearly this is a sector that Warren and Charlie have in their sights going forward.
According to its website, Empire was founded in 1940 by Max Kahn, was bought in 1998 by his grandsons David and Michael Kahn. Empire said it distributes hundreds of beverages such as the Chateau Latour first growth Bordeaux, Maker’s Mark bourbon, the digestif Jagermeister, and Samuel Adams beer. Warren Buffett appears to have good taste!