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Larson-Juhl
Acquired in 2001, Larson-Juhl is the world's leading manufacturer and distributor of custom-made picture frame moldings.
Business Model
The company serves custom frame shops across the globe. It is a high-service business that requires local distribution centers to provide quick delivery of thousands of different molding styles to small retailers.
Berkshire Acquisition
- Founder: Craig Ponzio (who built the company through dozens of acquisitions).
- Manager: Steve McKenzie (CEO at time of acquisition).
- Rationale: Buffett admired the "closed-loop" nature of the business—manufacturing its own product and distributing it through its own network. It was the "GEICO of picture frames" in terms of its efficiency and market dominance.
Quotes
"Larson-Juhl is to picture frames what Heinz is to ketchup." — 2001 Letter
📚 Historical Mentions & Citations (1)
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📜2002 LetterExcerpt Available▼
2002 LetterExcerpt Available
We added some sluggers to our lineup last year. Two acquisitions pending at yearend 2001 were completed: Albecca (which operates under the name Larson-Juhl), the U.S. leader in custom-made picture frames; and Fruit of the Loom, the producer of about 33.3% of the men’s and boy’s underwear sold in the U.S. and of other apparel as well.