This morning it was announced that billionaire investor Warren Buffett has purchased a major stake in Pilot Flying J truck stops and will become the company’s largest share holder over the next six years.
Haslam Stake In Pilot Flying J To Be Reduced to 20% By 2023
A news release issued today by Buffett’s Berkshire Hathaway Inc. stated that Berkshire will acquire a 38.6% stake in Pilot Flying J, leaving the Haslam family with a 50.1% majority interest. The Maggelet family will keep their 11.3% ownership stake.
According to the release, the leadership and headquarters of Pilot Flying J will remain the same: “The Haslam family will continue to own a majority of Pilot Flying J and Jimmy Haslam will remain as chief executive officer. Pilot Flying J President Ken Parent and the Company’s management team will also remain in place. The Company will continue to be headquartered in Knoxville, Tennessee.”
However, in 2023, Buffett’s Berkshire will acquire an additional 41.4% stake in Pilot Flying J. The Haslam family’s stake will be reduced to 20% at that time.
The financial terms of this agreement were not disclosed.
Buffett promised to work with Haslam in support of the trucking industry:
“Pilot Flying J is built on a longstanding tradition of excellence and an unrivaled commitment to serving North America’s drivers. Jimmy Haslam and his team have created an industry leader and a key enabler of the nation’s economy. The Company has a smart growth strategy in place and we look forward to a partnership that supports the trucking industry for years to come.”
Pilot Flying J CEO Jimmy Haslam issued a statement on the company’s new partnership with Buffett:
“Given the impeccable reputation of Warren Buffett’s Berkshire Hathaway, and our shared vision and values, we decided this was an ideal opportunityAs a family business that has evolved and prospered over the last six decades, we knew that any potential partner would need to share our commitment and have a proven track record as a long-term investor. We have that in Berkshire Hathaway – they believe in our strategy, support our team and are excited to see Pilot Flying J grow. We are honored and humbled to partner with them.”
With more than 750 locations and 27,000 employees in North America, Pilot brings in $20 billon in revenue. They offer over 70,000 truck parking spots across the U.S. and Canada.