Thorco parent company sold to Omaha business

On Dec. 25, Tom Pritzker, chairman of Marmon Holdings and Berkshire Hathaway Chairman and CEO, Warren Buffett announced the purchase of Marmon Holdings, Inc., Chicago, Ill, by Berkshire Hathaway, Inc., Omaha, Neb., which includes the sale of Thorco Industries.

Berkshire is slated to acquire 60 percent of Marmon for $4.5 billion within the first quarter of 2008. The remaining 40 percent will be acquired over the next five to six years depending on future earnings of the Marmon company.

Originally a small, privately owned ailing manufacturer in Ohio, brothers Jay and Robert Pritzker purchased Marmon in 1953, steadily increasing operations since. IN 2002 Jay's son Tom Pritzker became Chairman of the company, which is today an internationally recognized corporate conglomerate with more than 125 manufacturing and service businesses. Companies within Marmon are responsible for the employment of around 21,000 people and 250 manufacturing, distribution and service facilities. General revenue for the combined companies totals in the neighborhood of $7 billion tripling its income between 2002 and 2007.

Four of these facilities are housed locally in Lamar, Butler, Cassville, and Nevada. Thorco industries began in 1899 by Col. Frank M. Thorpe and changed hands several times until 1990 when it was purchased by the Marmon company.

John Nichols, Marmon's current CEO explained that while this is a large transaction between two corporate giants not many changes are expected after the deal has been finalized. He said, "This is a transaction that works for all stakeholders. It will allow Marmon to thrive under its existing management team and continue implementing our management philosophy. While we have a new shareholder, it is clear that Berkshire Hathaway shares the values and approach established by the Pritzkers over many decades."

Buffett commented on the transaction with optimism and respect for Marmon Holdings, "Our transaction was done just the way Jay would have liked it to be done -- no consultants or studies. After meeting with Messrs. Ptak and Nichols, they were just what I expected from Marmon's impressive record of growth and profitability over the years, and the decision to purchase and work out the details of this transaction was done without delay. I am pleased that over the next five to six years, we will be partnering and working with Tom Pritzker, John Nichols and Frank Ptak in continuing to build Marmon."