NEW YORK (CNNfn) - Billionaire investor Warren Buffett has agreed to acquire Executive Jet Inc., the company that pioneered the idea of time sharing for corporate jets, for $725 million in cash and stock.
Under terms of the deal, Buffett's investing vehicle, Berkshire Hathaway Inc., will pay the closely held private jet lessor and operator approximately $348 million in cash, with the balance in a combination of Class A and Class B Berkshire shares.
Executive Jet began its "fractional ownership," or NetJets, concept in 1986, allowing companies or individuals to buy as little as 1/16 of an ownership stake in a private jet.
Buffett, the nation's second-richest businessman, has a penchant for buying companies whose products he likes. Earlier this year, noting his fondness for Dilly Bars, Buffett acquired International Dairy Queen Inc.
Berkshire Hathaway said Executive Jet, which is expected to generate revenue of about $900 million this year, has $2.6 billion in general-aviation aircraft on order.
In 1997, the company's sales of corporate jet aircraft accounted for 9 percent of all worldwide deliveries, and it placed orders for 129 aircraft, or 31 percent of all corporate jets ordered in 1997, according to Berkshire.
Berkshire Hathaway (BRK.A) shares shed 1,550 to close at 73,450 in Wednesday trading. The companies Class B (BRK.B) shares fell 57 to close at 2,451.