Last month, Berkshire Hathaway formally announced that it had made a new acquisition in Germany, the second such acquisition in Germany in two years. The company, Wilhelm Schultz, is primarily a maker of high-performance pipes for the oil and gas industry, although it also produces products for the aerospace industry and other industries.
The acquisition was reportedly recommended by Mark Donegan, CEO of Precision Castparts Corporation, one of Berkshire Hathaway’s most recent acquisitions. The purchase itself was made by Berkshire Hathaway itself, not Precision Castparts, although it’s fairly certain that Donegan had a part in evaluating the company and possibly in the actual deal itself.
According to the company website, Wilhelm Schultz manufactures parts in three countries, including Germany, Brazil, and the United States. The American plants are reportedly located in Tunica, MS and Houston, TX.
Historically, Berkshire Hathaway has focused primarily on American companies and owns around 60 different companies (view the full list here). However, in 2008, the holdings company began dipping its toes in the European market and looking for an acquisition.
Berkshire Hathaway’s first purchase in Europe was in 2015 when the company snapped up the German company Detlev Louis Motorradvertriebs, a motorcycle equipment retailer.
While Wilhelm Schultz marks Berkshire’s second foray into Germany, the company purchased an Italian company, Zephir SpA, in 2016. The exact details and price of the deal were not disclosed.