Long and Foster, a privately owned firm in Washington D.C. has reportedly been acquired by HomeServices of America, whose parent firm is Berkshire Hathaway Inc. (NYSE:BRK.A).
Long & Foster happens to be one of the largest privately-owned firms located in Washington D.C. and the news about the acquisition by Berkshire Hathaway first made headlines on Thursday. Sources familiar with the proceedings stated that the deal between the two firms was massive but the financial details of the acquisition were not disclosed. There were also concerns that the deal between the two residential real estate giants would negatively affect local agents as well as their operations. However, officials revealed that there would be no impact.
“This is big. This is yet another data point that suggests that real estate drives the economy,” stated David Charron, the Chief Strategy Officer at Bright MLS.
The two firms revealed that Berkshire Hathaway HomeServices agents and the agents of Fonville Morisey Realty which is owned by Long & Foster will continue to compete against each other. This means they will continue to act as rivals in the real estate market despite the fact that they are owned by the same company.
Long & Foster which is based in Virginia acquired Fonville Morisey more than 10 years ago and it currently has roughly 11,000 agents spread out in 230 offices. This includes 800 agents of Fonville Morisey. According to Boomer Foster, the nephew of Wes Foster who was one of the founders, the new deal came about due to the fact that Foster has been funding the firm. Sales have also been providing significant support to HomeServices as well as Berkshire Hathaway.
Boomer Foster also pointed out that his uncle’s company was aware of the importance of caring for its people and also the legacy of the firm. This hints that part of the reason behind the deal was to secure the future of the company. Berkshire Hathaway CEO, Tommy Camp also stated that the two companies would continue to operate independently despite the acquisition.
Berkshire Hathaway stock closed the latest trading session on Friday at $263,600.