The investment fund led by billionaire entrepreneur Warren Buffett has just completed the largest dealership acquisition in the auto industry’s history.
Berkshire Hathaway has gone through with its purchase of the Van Tuyl Group, with the company headquartered in Dallas now renamed to Berkshire Hathaway Automotive. The new group is now the fifth largest auto dealership conglomerate in the US, as of retail sales accounted in 2013 and has at least $9 billion in annual revenue. “This is the beginning of a journey that will have no end,” commented Buffett. This is “the ideal platform with which to build an auto dealership business that will be thriving and growing 50 and 100 years from now.” Previous owner Larry Van Tuyl will remain as chairman of Berkshire Hathaway Automotive. While the Van Tuyl group had 78 dealerships at the time the acquisition was announced, the franchise conglomerate already grew and this week when all aspects of the sale were completed the network stood at 81 dealerships.
Jeff Rachor, previously the president of Van Tuyl Group, will now continue as CEO of Berkshire Hathaway Automotive and all managing partners at each Van Tuyl dealership have so far agreed to stay with the new company as equity partners in their respective dealerships. According to the company, their business model is based on the managing partners, which own minority ownership stakes and direct oversight of their dealerships.
Via Automotive News