American multinational company Berkshire Hathaway has agreed to acquire German motorcycle apparel and accessories retailer Detlev Louis Motorrad-Vertriebs for $400m.
The acquisition is expected to provide Berkshire with further opportunities for more acquisitions across Europe.
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Commenting on the deal, Berkshire Hathaway owner Warren Buffett was quoted by The Financial Times as saying: "There is nothing like a deal to get people’s attention.
"This is smaller than something we would normally do, but it is a door opener. I like the fact that we have cracked the code in Germany."
Following the acquisition, Detlev Louis Motorradvertriebs will operate as a standalone subsidiary of Berkshire.
Ute Louis, wife of late founder Detlev Louis, has inherited the motorcycle apparel retailer in 2012.
She has contacted Berkshire through her financial adviser Zypora Kupferberg regarding the sale.
Currently, Detlev Louis Motorradvertriebs has 71 stores in Germany and Austria. It also sells through catalogue and an ecommerce site aimed at the biker community.
The retailer employs nearly 1,600 people and generates around €270m in gross revenues annually.
Earlier in 2009, Berkshire acquired $300m of debt from Harley Davidson.
