Berkshire Hathaway Inc. and Van Tuyl Group announced … that they have entered into a definitive agreement pursuant to which Berkshire Hathaway will acquire the Van Tuyl Group, the nation’s largest privately-owned auto dealership group and which ranks fifth among all U.S. auto dealership groups.
After becoming a part of the Berkshire Hathaway family of businesses, the company will be known as Berkshire Hathaway Automotive. Berkshire Hathaway Automotive will continue to be led by Larry Van Tuyl, who will become Chairman, and Jeff Rachor, who will assume the role of Chief Executive Officer, as well as its experienced senior management team. Berkshire Hathaway Automotive will be headquartered in Dallas, Texas and will continue to pursue its strategy of operational excellence and disciplined acquisition growth, which is no change to the business model the company has pursued for the last 62 years.
“The Van Tuyl Group fits perfectly into Berkshire Hathaway from both a financial and cultural viewpoint. 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,” said Berkshire Hathaway’s Chairman and Chief Executive Officer, Warren Buffett.
I wonder if this is going to mean more cross-promotion. A recent ad for BH’s GEICO Insurance suggested, not the usual “up to 15 percent” savings, but enough, maybe, to buy her a ring — a ring from Helzberg Jewelers, another BH company.
The Van Tuyl Group operates in ten states: they own, for example, all the “Reliable” dealerships in Springfield, Missouri.