While it wasn’t the big acquisition he recently said he’s been “salivating” for, Warren Buffett and Berkshire Hathaway did recently make an addition to its business portfolio. Late last week, the firm announced it will acquire Omaha-based Oriental Trading Company, the nation’s largest direct retailer of value-priced party supplies, arts and crafts, school supplies, toys and novelties.
“Oriental Trading is a leader in its industry, has a strong management team and delivers exceptional customer value and service,” Buffett said in a press release. “By increasing revenue, profits and the customer base over the last few years, Sam Taylor and the entire Oriental Trading team have successfully improved the business and positioned it for long-term growth. We are delighted to have them join the Berkshire Hathaway family and continue their quest to make the world more fun. They have had several changes to ownership in the past, but OTC has a permanent home with Berkshire Hathaway. ”
The deal is expected to close by the end of November, and will cost Berkshire about $500 million, Bloomberg News reported. That leaves plenty of cash left over for Buffett to pursue bigger deals — in a recent regulatory filing, Berkshire stated that its cash level rose 17% in the third quarter to almost $48 billion, just short of the firm’s record high, according to Bloomberg.