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From Tradeonlytoday.com -
Warren Buffett's company buys Boat America Corp.
National Indemnity, a subsidiary of Berkshire Hathaway Corp., agreed to
purchase Boat America Corp., the main supplier of towing, insurance and
other services to BoatU.S.
The transaction is pending regulatory approval. Terms were not disclosed
Berkshire, a holding company headquartered in Omaha, Neb., oversees and
manages a number of diverse companies, including Geico Auto Insurance,
Business Wire, Fruit of the Loom and Shaw Industries. The company has a
reputation for acquiring well-performing companies, and leaving management
in place to continue to perform well.
Warren Buffett, Berkshire's CEO and chairman, is one of the richest men in
the nation, ranked second to Bill Gates, according to Forbes magazine's 2007
list.
The Boat America board of directors was amenable to the sale because it
ensures future growth for the company, which to date has generated growth
internally, according to Mike Sciulla, BoatU.S. vice president of public
affairs. He says Berkshire is a $100 billion company with $40 billion in the
bank.
"When Berkshire Hathaway came knocking ... it was an offer we couldn't
refuse," he said.
Boat America Corp. was formed in 1966 to provide towing, insurance and
finance services to the nonprofit Boat Owners Association of America. The
company provides one of the largest recreational boat insurance programs and
one of the largest networks of towing vessels. The acquisition does not
include BoatU.S.
"Nothing changes at BoatU.S.," said Sciulla.
Boat America has been an employee-owned company since 2003. Proceeds from
the sale will be rolled over into employee 401k retirement accounts,
according to Sciulla.
"What it means is that the employees of Boat America, basically, have gotten
their investment returns on the ESOP now rather than having to wait 10, 15,
20 years into the future," said Sciulla. "It's been a happy day for Boat
America employees."
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