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