By Jonathan Stempel

NEW YORK (Reuters) – Berkshire Hathaway (NYSE:), the conglomerate led by billionaire Warren Buffett, paid $2.6 billion final month for the 20% of the Pilot Journey Facilities truck cease enterprise it didn’t already personal, after resolving a lawsuit over the value.

The value means Berkshire paid about $13.6 billion for Pilot, which operates greater than 725 areas within the U.S. and Canada, and bought 13 billion gallons of gasoline in 2022.

Berkshire disclosed the acquisition value in its annual report on Saturday.

Pilot, generally often called Pilot Flying J, had been based in 1958 by Jim Haslam after he paid $6,000 for a Virginia fuel station. It was later run by Jimmy Haslam, the billionaire proprietor of the Cleveland Browns soccer workforce.

Berkshire paid $2.76 billion in 2017 for 38.6% of Pilot and $8.2 billion for an additional 41.4% in January 2023, and subsequently overhauled its administration.

Pilot, primarily based in Knoxville, Tennessee, added $603 million to Berkshire’s revenue in 2023.

The Haslams had an annual 60-day window to promote their final 20% of Pilot, with the value primarily based on its earnings.

In competing lawsuits in Delaware Chancery Court docket, both sides accused the opposite of manipulating Pilot’s accounting in unhealthy religion, with the Haslams saying Berkshire was undervaluing its stake, and Berkshire involved it’d overpay.

Buffett didn’t point out Pilot in his annual letter to Berkshire shareholders, additionally launched on Saturday, however provided an anecdote in regards to the threat of disappointment in acquisitions.

He recalled how Hugh McCulloch, the primary comptroller of america, warned nationwide banks in 1863 to not take care of a “rascal” even when they believed they might keep away from being cheated.

“Many bankers who thought they might ‘handle’ the rascal downside have realized the knowledge of Mr. McCulloch’s advice–and I’ve as effectively,” Buffett stated. “Individuals are not that simple to learn. Sincerity and empathy can simply be faked. That’s as true now because it was in 1863.”

Berkshire didn’t instantly reply to a request for touch upon Saturday.

Buffett stated final Could that he wished he may have purchased all of Pilot in 2017, however the Haslams didn’t wish to promote.