Berkshire Hathaway has agreed to buy a German maker of motorcycle apparel and accessories, Detlev Louis Motorrad-Vertriebs, for approximately 400 million euros ($456 million).
Despite the current market conditions, Warren Buffett, once again demonstrates that opportunities can be found in any market. He sees Europe as an opportunity for growth, calling the purchase a “door opener” that will allow for further expansion and bigger acquisitions in Europe. Detlev Louis has 71 locations in Germany and Austria and serves 25 countries online. The company will remain a standalone business under Berkshire Hathaway.
This deal is also a consolidation in the automotive space. Last year, Berkshire Hathaway purchased U.S. car dealership Van Tuyl Group, which allowed Buffett to bundle and sell more things under the family of Berkshire Hathaway. Buffet probably sees similar synergies in the Detlev Louis acquisition in addition to geographic expansion.
Looking to the future, we’ll likely see more acquisitions by Berkshire Hathaway in both the automotive space and in Europe.
What do you think Buffett’s next move is?