Thursday, July 26, 2012

(BN) Berkshire to Buy Meadowbrook, Adding $6 Billion Revenue

July 26 (Bloomberg) -- McLane Co., the trucker owned by Berkshire Hathaway Corp., agreed to buy Meadowbrook Meat Co. as Warren Buffett increases his bet on food-distribution companies.

McLane, which delivers groceries and alcoholic beverages to drug stores, convenience stores and warehouse outlets, will acquire about 35 distribution facilities nationwide and $6 billion in annual revenue with the purchase, the firm said today in a statement, which didn't include terms. Closely held Meadowbrook, which was founded in Rocky Mount, North Carolina, in 1947 as a pork processor, now supplies restaurant chains across the U.S., according to the statement.

McLane, which generated about $370 million of pretax earnings last year on about $33 billion in revenue, has been expanding as Buffett empowers Chief Executive Officer Grady Rosier to pursue acquisitions. The Temple, Texas-based company bought Empire Distributors Inc., Horizon Wine & Spirits and Delta Wine & Spirits to boost alcoholic beverage distribution in the past three years.


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