Berkshire Hathaway to buy Oriental Trading CompanyNov 2 (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRK-A, BRK-B) is to buy direct marketing toy and party supplies merchant Oriental Trading Co for $500 million, the Wall Street Journal reported on Friday, citing a person involved in the deal.

Oriental Trading's shareholders held an auction earlier in the year that failed to yield a buyer, after which Berkshire stepped in with a compelling offer, the Journal said, citing another person close to the deal.

Berkshire Hathaway and Oriental Trading Co were not available for comment outside regular U.S. business hours.

In August, Reuters reported that Oriental Trading, which also sells arts and crafts and home decor items, was up for sale in a deal that could fetch about $500 million.

The company, which filed for Chapter 11 bankruptcy protection in August 2010, is owned by more than a dozen financial institutions.


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cindy8556

Talk about investing in China! Every single thing oriental trading sells is made in China. He talks about raising the taxes on the wealthy then sends half a billion to China. Instead of investing in a chinese company, why don't you manufacture those same items here, Mr. Buffett? Put that money into a manufacturing plant and hire some americans to do the work?

November 05 2012 at 3:11 PM Report abuse rate up rate down Reply
skibble

I shop their catalog for kids' parties and holiday parties. No more.

November 03 2012 at 12:08 PM Report abuse rate up rate down Reply
Kent

This is a bit unusual for Berkshire. Usually, Buffet and his partner, Charlie Munger, buy companies with good track records of earnings growth and good management teams with good business models.

If anything, Buffet buys companies that are very well run, but lack sufficient capital to really grow.

Buying a company that is owned by creditors, post Chapter 11, is just not typical for Buffet. He must have met the management team and felt that their vision for the future was compelling.

November 03 2012 at 12:05 PM Report abuse +1 rate up rate down Reply
barney

what percentage of the trash they sell is manufactured in US.......1%

November 03 2012 at 11:16 AM Report abuse +3 rate up rate down Reply
hony53

Oriental Trading. I can't believe Buffet would buy this company. They "sell" the cheapest garbage in existence. UGH.

November 03 2012 at 11:08 AM Report abuse +2 rate up rate down Reply
dolfin1943

gee isn't he a democrat. Where did he get his money. OH he made it on his own. By a free enterprise system called capitalism, something he doesn't believe in huh...

November 03 2012 at 8:20 AM Report abuse +3 rate up rate down Reply
1 reply to dolfin1943's comment
croshatch

What gives you the silly idea he doesn't believe in capitalism?

November 03 2012 at 12:22 PM Report abuse +1 rate up rate down Reply
GIDAD1

BUFFETT - Oriential Trading Company is NOT A CONSUMER FRIENDLY COMPANY.

November 03 2012 at 7:51 AM Report abuse -1 rate up rate down Reply
1 reply to GIDAD1's comment
Kent

Why do you say that? Examples please.

November 03 2012 at 12:01 PM Report abuse +1 rate up rate down Reply
GIDAD1

BUFFETT - Oriential Trading Company NOT CUSTOMER FRIENDLY.

November 03 2012 at 7:46 AM Report abuse -1 rate up rate down Reply
manzanas

let see how well buffett insurance companys pay out in north east storm

November 03 2012 at 1:36 AM Report abuse +3 rate up rate down Reply
jaguar6cy

The explanation by ybob555 below is very accurate. But it will fail because it assumes that people educated in union controlled government funded schools will understand the difference between paying percentages and paying dollars. They don't. And they were taught that being dependent on government is good. That is why so many vote the way they do, They learned it in "school".

November 03 2012 at 1:08 AM Report abuse -1 rate up rate down Reply