Nalco Holding Co., the latest firm added to the stock portfolio of Warren Buffett's Berkshire Hathaway Inc., plans to expand its water treatment business in emerging markets including the Middle East and China, Bloomberg reported.
Nalco was the only firm added to Berkshire's U.S. equity portfolio in the fourth quarter, according to a regulatory filing yesterday. The Naperville, Illinois-based company makes chemicals that prevent corrosion and the buildup of harmful deposits in boilers and cooling towers, and serves the paper, steel and power industries.
"We're doing some exciting things to go after growth opportunities, and it's a great feeling for me and my team to have one of the savviest investors in the world give us a vote of confidence," said Nalco Chief Executive Officer J. Erik Fyrwald in a telephone interview today. "There's a little more energy in our step today."
Nalco shares rose 57 cents, or 5.2 percent, to $11.63 at 2:04 p.m. in New York Stock Exchange composite trading. The stock has declined 42 percent in the past 12 months.
Berkshire, based in Omaha, Nebraska, has been investing in manufacturing firms with global operations in the past three years. Buffett, 78, made his first non-U.S. acquisition in 2006, paying $4 billion for 80 percent of Israel-based Iscar Metalworking Cos., a closely held maker of industrial tools with operations in countries including China.
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