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Berkshire Hathaway Buys Oriental Trading for $500M

The KKR-backed target sells arts and crafts, school supplies and toys

Billionaire businessman Warren Buffet’s Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) will acquire Omaha-based Oriental Trading Co., which sells party supplies and other goods for about $500 million, reportedly.

Oriental Trading also sells arts and crafts, school supplies, toys and novelties, including themed gift bags, dinosaur pinatas and glow-in-the-dark jewelry.


“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," Buffet says. The company offers guaranteed lowest prices on its more than 40,000 products. 

Oriental Trading emerged from bankruptcy protection in 2011, after filing for Chapter 11 protection in August 2010.

Private equity Kohlberg Kravis Roberts & Co. is Oriental Trading's largest shareholder, with about a one-third stake, after the firm exchanged its debt for equity when the the company exited from bankruptcy.

Carlyle bought a 68 percent stake in Oriental Trading in 2006 from private equity firm Brentwood Associates.

Berkshire Hathaway’s businesses include property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retail and other services. The business is also based in Omaha.

The deal is subject to regulatory approval and is expected to close by the end of November.

Lazard Middle Market acted as Oriental Trading’s financial adviser.

 

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