OMAHA, Neb. And DALLAS — Berkshire Hathaway Inc. completed its acquisition of the Van Tuyl Group on Tuesday. The transaction, announced in October, is the largest in the retail automotive industry’s history, officials said.
Van Tuyl Group, the largest privately held dealership group in the United States, 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 chief executive officer of the enterprise.
The cornerstone of the Van Tuyl business model is local entrepreneurial dealership managers with minority ownership stakes, officials said. Every managing partner has enthusiastically 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, CEO of Berkshire Hathaway, Inc. “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.”
“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,” Van Tuyl said. “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.”