A media conference was scheduled for Wednesday afternoon presumably to announce that R.C. Willey, Utah's largest volume retail furniture operation, is being sold to Berkshire Hathaway Inc., Omaha, Neb.
The company is headed by Warren E. Buffett, chairman and chief executive officer and one of the country's richest men.William H. Child, R.C. Willey's chief executive officer, was scheduled to conduct the media conference. None of Berkshire Hathaway's people were scheduled to attend, leaving the announcement to R.C. Willey officials.
Child said the sale for an undisclosed amount is a "rare opportunity for us because Berkshire Hathaway is a dream partner." He stressed that R.C. Willey didn't need to sell, but the purchase by Berkshire Hathaway will be a great asset because it gives R.C. Willey the ability to grow.
Describing Buffett as a warm and friendly person, Child said Buffett is willing to spend money on anything that makes sense. "Obviously, we will be expanding," said Child.
Child said Buffett purchases companies with good management. R.C. Willey has been named one of the fastest growing furniture companies in the United States and currently has $250 million in annual sales volume.
None of R.C. Willey's 1,300 employees will be affected by the purchase and neither will the company's management, said Child. The R.C. Willey store name will not be changed.
R.C. Willey operates stores at 861 E. 6600 South, 2301 S. 300 West, 4000 W. 4739 South, Syracuse and Orem. In addition, the company has a clearance center at 9010 S. Redwood Road and carpet center at 5520 Van Winkle Expressway.
In 1991, R.C. Willey opened a $13.5 million warehouse that adjoins its 80,000-square-foot store on 11 acres at 2301 S. 300 West. In 1990, R.C. Willey was named national retailer of the year, and in 1994 it was named retailer of the year by FURN, the Rocky Mountain affiliate of the International Home Furnishings Representatives Association.
Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities, according to the company's annual report. On Tuesday, the company's stock on the New York Stock Exchange closed at $23,000 per share, up $150.
The annual report says BH holds 50 percent of the outstanding stock of GEICO Co., an insurance company; 13 percent of the capital stock of Capital Cities/ABC Inc.; 11 percent of the capital stock of The Gillette Co; 8 percent of the capital stock of The Coca-Cola Co.; 15 percent of the capital stock of the Washington Post Co.; and 13 percent of the capital stock of the Wells Fargo Co.
BH also publishes the Buffalo News, a daily newspaper in Buffalo, N.Y. Other business activities include publication of World Book Encyclopedias and Childcraft Books; home cleaning systems marketed under the Kirby name; See's Candies; Nebraska Furniture Mart; Fechheimer Brothers Co., (uniforms); and H.H. Brown Shoe Co.
Buffett, who still lives in the same modest house in Omaha where he has lived for 40 years, said the company's gain in net worth in 1994 was $1.45 billion or 13.9 percent. He said the company's formula is to purchase companies "that have good underlying economics and are run by honest and able people" at sensible prices.
Buffett's homespun attitude is evident in the 1994 annual report when he talks about a baseball game in April between the Omaha Royals and the Buffalo Bisons, a team owned by his friends, Mindy and Bob Rich. "I will try to entice Bob into a one-pitch duel on the mound."
"Bob is a capitalist's Randy Johnson, young, strong and athletic - and not the sort of fellow you want to face early in the season. So I will need plenty of vocal support," said the 63-year-old Buffett in his annual report.