The Haslam family sold its remaining 20% stake in Pilot Travel Centers, the country’s leading operator of truck stops, to
Berkshire Hathaway,
under an agreement that permitted the sale in the first two months of 2024, according to statements from the family and Berkshire.
Terms weren’t disclosed. Berkshire may disclose the sale price in its annual report, which is due for release in late February or early March.
Based on Berkshire’s valuation of that 20% stake a year ago, the sale could net about $3 billion to the Haslam family, which realized about $11 billion from the sale of the first 80% of Pilot Travel Centers.
Berkshire said the terms were based on a settlement agreement reached by the two parties earlier this month.
Pilot operates more than 750 travel centers in the U.S. and Canada and was among the largest private companies in the country before the sale to Berkshire. The Haslam family is also majority owner of the Cleveland Browns.
Berkshire reached its deal to buy Pilot in 2017 in three stages—an initial purchase of nearly 40% in 2017, a subsequent sale of just over 40% in early 2023 and a final sale of 20% at the Haslams’ option in early 2024.
The initially amicable relationship between the Haslams and Berkshire took an ugly turn in late 2023 when the Haslams sued Berkshire, claiming that Berkshire was seeking to underpay the family for the remaining 20% by changing the accounting for Pilot Travel Centers without its permission.
Berkshire later alleged that Jimmy Haslam, the CEO of
PilotCorp
, the family company, promised secret side payments to Pilot Travel Centers executives last year to artificially boost Pilot’s 2023 earnings to maximize the value of the remaining 20% stake. The value was to be determined based on 2023 earnings.
Pilot Corp. said the Berkshire charges against Jimmy Haslam lacked any merit.
The dispute was headed for a trial in Delaware when the two parties agreed in early January to drop the litigation and all claims and counterclaims.
The dispute might have been settled in October, when Pilot’s founder, Big Jim Haslam, 93, reached out to Berkshire CEO Warren Buffett, who is also 93, by telephone.
The two appeared to reach an oral agreement, according to Pilot’s original suit in October. But a deal didn’t materialize and the litigation ensued. Big Jim Haslam is the father of Jimmy Haslam.
Write to Andrew Bary at [email protected]
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