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Johns Manville
Acquired in 2001, Johns Manville is a leading manufacturer of premium-quality building and specialty products, including fiberglass insulation and commercial roofing.
Business Model
Johns Manville operates in the highly competitive building materials space. Its strength lies in its energy-efficient products and strong relationships with commercial contractors.
Berkshire Acquisition
- Context: The company had previously emerged from a complex bankruptcy related to asbestos liabilities. By 2001, it was a clean, profitable enterprise.
- Rationale: It fit Buffett's "building products" basket along with Acme Brick and Benjamin Moore.
Quotes
"Johns Manville is a huge, solid business with a fine management team led by Jerry Henry." — 2001 Letter
📚 Historical Mentions & Citations (2)
Click a reference document below to expand and read the exact paragraph(s) containing this concept in the archive.
📜2000 LetterExcerpt Available▼
2000 LetterExcerpt Available
• Finally, in late December, we agreed to buy Johns Manville Corp. for about $1.8 billion. This company’s incredible odyssey over the last few decades — too multifaceted to be chronicled here — was shaped by its long history as a manufacturer of asbestos products. The much-publicized health problems that affected many people exposed to asbestos led to JM’s declaring bankruptcy in 1982.
📜2001 LetterExcerpt Available▼
2001 LetterExcerpt Available
Our star-studded group grew in 2001. First, we completed the purchases of two businesses that we had agreed to buy in 2000 — Shaw and Johns Manville. Then we acquired two others, MiTek and XTRA, and contracted to buy two more: Larson-Juhl, an acquisition that has just closed, and Fruit of the Loom, which will close shortly if creditors approve our offer. All of these businesses are led by smart, seasoned and trustworthy CEOs.
• The large acquisitions we initiated in late 2000 — Shaw, Johns Manville and Benjamin Moore — all came through their first year with us in great fashion. Charlie and I knew at the time of our purchases that we were in good hands with Bob Shaw, Jerry Henry and Yvan Dupuy, respectively — and we admire their work even more now. Together these businesses earned about $659 million pre-tax.