An Israeli toolmaker which is part of Warren Buffett’s Berkshire Hathaway is looking to acquire companies that are involved in the same business. Bloomberg’s Calev Ben-David and Alisa Odenheimer wrote yesterday:

Warren Buffett’s Iscar Metalworking Cos., the Israeli toolmaker that agreed to buy Japan’s Tungaloy Corp. in September, is seeking more acquisitions and sees the global financial slump as a buying opportunity, Chairman Eitan Wertheimer said.

“I’ve learned from my guru to be greedy when others are fearful,” Wertheimer said in an interview in Jerusalem, echoing a statement frequently made by Buffett. Iscar is part of Buffett’s Berkshire Hathaway Inc., which made two acquisitions in October and has committed $8 billion to buying stakes in General Electric Co. and Goldman Sachs Group Inc.

Iscar, based in Tefen, northern Israel, makes cutting gear for industries ranging from aerospace to auto manufacturing, for clients including Toyota Motor Corp. Berkshire paid $4 billion two years ago for an 80 percent stake in Iscar, which competes with market leader Sandvik AB. Iscar is looking for industrial companies that are in the same business, according to Wertheimer.

“We like to stick to basics,” he said. “If you sleep on the floor, you can’t fall out of bed.”

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Source:

“Buffett’s Israel Unit Iscar Seeking More Acquisitions (Update3)”
Calev Ben-David, Alisa Odenheimer
Bloomberg, November 18, 2008

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