Buffett's Berkshire buys stock in Haslam's Pilot Flying J
Warren Buffett's Berkshire Hathaway has agreed to make a "significant minority investment" in Pilot Travel Centers.
CNBC is reporting the conglomerate will acquire nearly 40 percent of the Tennessee-based truck stop operator.
Better known as Pilot Flying J, the company is the largest operator of travel centers in North America with 750 locations and more than $20 billion in revenues.
Berkshire will acquire a 38.6 percent equity stake in the travel center operator. The Haslam family will hold a majority interest with 50.1 percent ownership.
FJ Management, owned by the Maggelet family, will retain 11.3 percent ownership until 2023, when Berkshire will become the majority shareholder with 41.4 percent stake. When that happens, the Haslam family will retain 20 percent ownership in the company and remain involved, according to the release.
Jimmy Haslam will remain CEO at this point and the company's headquarters will remain in Knoxville.
"Jimmy Haslam and his team have created an industry leader and a key enabler of the nation's economy," Buffett, chairman, president and CEO of Berkshire, said in a release. "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."
This isn't the first time Buffett has invested in East Tennessee. In 2003, Berkshire acquired Maryville modular home manufacturer Clayton Homes for $1.7 billion.