Oct. 2, 2014—Billionaire investor Warren Buffett is now officially a car guy.
Buffett’s Berkshire Hathaway Inc. announced on Thursday that it has reached an agreement to purchase the Van Tuyl Group, the nation’s largest privately owned auto dealership group.
Van Tuyl Group, which operates 32 collision repair centers across the country, will now operate under the name Berkshire Hathaway Automotive.
The company will continue to be led by Larry Van Tuyl, who will become chairman, and Jeff Rachor, who will assume the role of CEO, as well as its experienced senior management team.
Berkshire Hathaway Automotive will be headquartered in Dallas.
"The Van Tuyl Group fits perfectly into Berkshire Hathaway from both a financial and cultural viewpoint,” Buffett said in a release. “Larry Van Tuyl along with his father, Cecil, spent decades building outstanding dealerships operated by local partners. In recent years, he has shared management with Jeff Rachor, a seasoned auto retailer who will retain a financial interest in all dealerships. The Van Tuyl Group enjoys excellent relations with the major auto manufacturers and delivers unusually high volumes at its 78 locations. This is just the beginning for Berkshire Hathaway Automotive.”
The transaction is expected to be completed in the first quarter of 2015 and is subject to obtaining approvals from the major auto manufacturers as well as certain customary closing conditions, including various regulatory approvals.
