Billionaire Warren Buffett has completed a deal to purchase the top privately-held dealership chain in the U.S., renaming it Berkshire Hathaway Automotive.
Last October, Berkshire Hathaway announced that it would purchase the Ban Tuyl Group, which is the fifth-largest retailer in American with 81 stores in 10 states like California, Florida and Texas, to use it to purchase more dealerships.
The deal was scheduled to close sometime before the end of the first quarter this year, according to a company release.
"This is the beginning of a journey that will have no end," Buffett said in a statement. "Cecil and Larry (Van Tuyl) 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."
Buffet, 84, added that the Van Tuyls "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 Berkshire Hathaway Automotive headquarters will be located in Dallas and could keep a number of the previous group's executives on board, like its founder's son Larry Van Tuyl, who will be the company's new chairman.
"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 in a statement. "Berkshire Hathaway's acquisition of the Van Tuyl Group has been embraced by all internal and external stakeholders."
Buffett said auto sales have rebounded faster than he anticipated from the 2008 automotive financial crisis and plans to add more dealerships.
"Our partners and 10,000 plus associates are extremely proud and excited about the bright future as Berkshire Hathaway Automotive," said new company CEO Jeffrey Rachor in the statement in a release. "We are all grateful that Mr. Van Tuyl found the ideal buyer to preserve the Van Tuyl business model and our unique entrepreneurial culture."
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