Warren Buffett wants to sell you a car and he’s making waves in the auto dealership industry today.
The Oracle of Omaha’s investment firm is acquiring the Van Tuyl Group, the biggest privately owned U.S. auto dealership group. The result will be named Berkshire Hathaway Automotive, after Buffet’s Berkshire Hathaway investment firm. In a statement CNBC, Buffett said that the acquisition would be in the form of an all-cash deal and that he expects buy more dealerships in the future. The deal will be completed in the first half of next year and will force the Van Tuyl headquarters to move from Phoenix to Dallas.
Van Tuyl Group CEO, Larry Tuyl will now be chairman of Berkshire Hathaway Automotive, while Jeff Rachor will be CEO. As of the end of 2013, the Van Tuyl Group had 75 dealerships that sold 130,447 new vehicles last year.
[Source: Automotive News]