Warren Buffet to Larry Van Tuyl- Create Berkshire Auto Unit
Berkshire Hathaway is acquiring Van Tuyl Group, the nation’s largest privately-owned auto dealership group. Van Tuyl Group ranks fifth among all U.S. auto dealership groups. Terms of the acquisition were not disclosed, but Warren Buffett mentioned on CNBC that revenue per year is around $9 billion.
After becoming a part of the Berkshire Hathaway family of businesses, Van Tuyl Group will be known as 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 Chief Executive Officer. And together with 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. It is also reported that there will be no change to the business model the company has successfully used for the past 62 years.
Warren Buffett, Berkshire Hathaway’s Chairman and Chief Executive Officer mentioned in an interview “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.”
On the other hand Larry Van Tuyl, current Chief Executive Officer of the Van Tuyl Group also said in an interview “We are proud of all that has been accomplished with the support of our dealer partners, our employees and the manufacturers that we represent. We are very pleased to have one of the world’s most respected companies, Berkshire Hathaway, assume ownership of our company with the commitment to preserving our unique culture, business model and philosophy,” said. “I cannot think of a better steward to continue the legacy of what my father and I have built over the last 62 years, and I am confident this transaction will position the company on a course of continued success.”
The acquisition is expected to be completed in the first quarter of 2015. The transaction is subject to obtaining approvals from the major auto manufacturers as well as certain customary closing conditions. These will include various regulatory approvals.
About Berkshire Hathaway
Berkshire Hathaway Inc. is an American multinational conglomerate holding company with headquarters in Omaha, Nebraska, United States. The company wholly owns GEICO, BNSF, Lubrizol, Dairy Queen, Fruit of the Loom, Helzberg Diamonds, FlightSafety International, and NetJets, owns half of Heinz and an undisclosed percentage of Mars, Incorporated, and has significant minority holdings in American Express, The Coca-Cola Company, Wells Fargo, and IBM. Berkshire Hathaway averaged an annual growth in book value of 19.7% to its shareholders for the last 49 years. According to the Forbes Global 2000 list and formula Berkshire Hathaway is the fifth largest public company in the world. Berkshire Hathaway stock market evolution:
About Warren Buffett
Warren Edward Buffett is an American business magnate, investor and philanthropist. He was the most successful investor of the 20th century. Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway and consistently ranked among the world’s wealthiest people. He was ranked as the world’s wealthiest person in 2008and as the third wealthiest in 2011. In 2012 Time named Buffett one of the world’s most influential people.
About Van Tuyl Group
Van Tuyl Group, Inc. provides management consulting services. Their clients include the largest group of privately held automotive dealerships in the United States. Van Tuyl Group has offices in Arizona, Kansas, and Texas. It’s the management consulting group that has approximately 70 independently operated dealerships all over the US.
The Van Tuyl family has had a long history with the automotive industry. This started with Cecil Van Tuyl that led a Kansas City Chevrolet dealership in 1955. She was later joined by his son Larry in 1971; together they have built a world class management consulting company based on the principles of hiring the right people and giving their dealership clients the right tools, training and support they need to succeed.
About Larry Van Tuyl
Mr. Larry Van Tuyl is the president of the Van Tuyl Group, Inc. It provides management consulting services to automotive dealerships in Arizona, California, Florida, Georgia, Illinois, Indiana, Missouri, Nebraska, New Mexico, and Texas. Its services include call measurement solutions, insurance coverage for vehicles, automotive fluid maintenance, and supply chain optimization. The company was founded in 1955 and is based in Irving, Texas with additional offices in Phoenix, Arizona; and Merriam, Kansas.