Berkshire Hathaway to Acquire RV Company
Omaha, NE, July 21--Berkshire Hathaway will acquire recreation vehicle manufacturer Forest River Inc. from its founder and CEO, Peter J. Liegl.
Forest River will continue to be managed by Liegl as Founder and CEO and its current management team, all continuing to be headquartered in Elkhart, Indiana.
Warren Buffett, Chairman of Berkshire, stated "We are very excited about the growth prospects of Forest River. Pete Liegl and his strong management team have built a remarkably successful company that is well positioned for further growth. Forest River’s focus on building quality leisure vehicles at fair prices represents a strong opportunity for the company’s dealers and customers throughout the U.S. and Canada."
Liegl, founder and CEO of Forest River, stated "Partnering with Berkshire creates a great opportunity for the employees, dealers and suppliers of Forest River to dramatically grow and build our business. With Berkshire’s strong reputation and financial backing, we now have the firepower to make investments and acquisitions at a rate that otherwise would not have been possible."
The acquisition is subject to customary conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Act. Following the acquisition, which is expected to occur during the third quarter of 2005, Forest River will be a wholly owned subsidiary of Berkshire Hathaway.
Berkshire Hathaway is a holding company owning subsidiaries engaged in a number of diverse business activities. The most important of these is the property and casualty insurance business conducted on both a direct and reinsurance basis through a number of subsidiaries.
Forest River is a leading manufacturer of leisure vehicles in the U.S. The company manufactures a complete line of motorized and towable recreation vehicles, utility trailers, buses, boats and manufactured houses.
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