Group 1 Automotive announced it has signed a definitive agreement to acquire the dealership assets and real estate of Hennessy Automobile Companies. The deal significantly expands the company’s presence in the Atlanta metropolitan market.
The transaction includes 10 dealerships and a brand portfolio containing key luxury and import brands, including Lexus, Jaguar/Land Rover, and Porsche. It includes facilities with 500 service bays staffed by approximately 280 technicians.
The deal is expected to generate approximately $1.7 billion in annualized revenue and to be immediately accretive to Group 1’s earnings per share upon closing. Combined with the recent acquisitions of Stone Mountain Honda and Stone Mountain Toyota, the transaction will expand Group 1’s Atlanta presence from three to 15 dealerships. This will make Atlanta the company’s second largest market by revenue and its ninth U.S. market with five or more stores.
Group 1 said Atlanta is the sixth largest metropolitan statistical area and seventh largest designated market area in the U.S., as well as the fastest-growing metro area and largest luxury vehicle market in the Southeast, with 21% luxury vehicle market share. The city’s real GDP growth outpaced the national average by more than 50% from 2014 to 2023, and the average household income within Hennessy’s markets is approximately $150,000 per year.
The Hennessy acquisition is valued at approximately $1.3 billion, inclusive of blue sky, real estate, and operating assets. Group 1 plans to finance the transaction with new debt backstopped by a bridge commitment. The deal is expected to close by year-end 2026, subject to regulatory approvals, OEM approvals, and customary closing conditions.
Support: J.P. Morgan Securities LLC is acting as exclusive financial advisor, and Hill Ward Henderson and Vinson & Elkins are serving as legal advisors, to Group 1. Kerrigan Advisors is acting as transaction advisor, and Holland and Knight is acting as legal advisor, to Hennessy Automobile Companies.
KEY QUOTES:
Our cluster strategy has long focused on premium brands in attractive growth markets with high-revenue rooftops where we can leverage scale and expand margins. Building on a strategy we have executed successfully across our largest markets, including Houston and Boston, this acquisition significantly expands our presence in the growing Atlanta market and creates new opportunities to enhance operational efficiency and deliver attractive, long-term returns. The Hennessy family has a tremendous reputation in Atlanta. We feel privileged to purchase this world class business. We thank the Hennessy family for trusting Group 1 with the transaction.
Daryl Kenningham, President and CEO of Group 1 Automotive
For 62 years, our family company has been a cornerstone of the Atlanta automotive community, excelling in vehicle sales, servicing and leasing. Under Group 1’s stewardship, I know this strong legacy and deep commitment to Atlanta will continue. Group 1 shares our customer-focused philosophy, which will remain the foundation as they move our dealerships into the future.
Peter Hennessy
