News: Consolidator Report
The transaction, which was originally announced in October 2014, is the largest in the retail automotive industry’s history.
Berkshire Hathaway Inc. has completed its acquisition of the Van Tuyl Group, the largest privately held dealership group in the U.S. This transaction, which was announced in October 2014, is the largest in the retail automotive industry’s history.
The company has been renamed Berkshire Hathaway Automotive and is headquartered in Dallas. Larry Van Tuyl will serve as chairman of the board of the new company. Jeffrey C. Rachor, formerly Van Tuyl Group’s president, will be CEO of the enterprise. The cornerstone of the Van Tuyl business model is local entrepreneurial dealership managers with minority ownership stakes. Every managing partner has committed to stay on with Berkshire Hathaway Automotive, and they will remain equity partners in their respective dealerships.
“This is the beginning of a journey that will have no end,” said Warren Buffett. “Cecil and Larry have given us the ideal platform with which to build an auto dealership business that will be thriving and growing 50 and 100 years from now. The fun has just started.”
Added Van Tuyl, “Mr. Buffett and I made this deal on a handshake, and it is no surprise that completing the transaction went smoothly and according to plan. Berkshire Hathaway’s acquisition of the Van Tuyl Group has been embraced by all internal and external stakeholders. I want to take this opportunity to thank our manufacturer partners for their universal support and approval of the transfer of their franchises. Warren Buffett and Berkshire Hathaway are the perfect owners of this business. My father, Cecil, the original founder of the Van Tuyl Group, would be very proud today.”
“Our partners and 10,000 plus associates are extremely proud and excited about the bright future as Berkshire Hathaway Automotive,” said Rachor. “We are all grateful that Mr. Van Tuyl found the ideal buyer to preserve the Van Tuyl business model and our unique entrepreneurial culture. The organization will continue to execute our simple strategy of operational excellence and sensible growth through acquisitions.”