Expected to Add Approximately $1.7 Billion in Annualized Revenues and Be Immediately Accretive to EPS Upon Closing
HOUSTON, July 30, 2026 /PRNewswire/ -- Group 1 Automotive (NYSE: GPI) ("Group 1" or the "Company"), a Fortune 250 automotive retailer with 251 dealerships located in the U.S. and U.K., today announced it has signed a definitive agreement to acquire the dealership assets and real estate of Hennessy Automobile Companies ("Hennessy"), significantly expanding the Company's presence in the Atlanta metropolitan market.
"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," said Daryl Kenningham, President and Chief Executive Officer of Group 1 Automotive. "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."
The transaction includes 10 dealerships, a brand portfolio that contains key luxury and import brands, including Lexus, Jaguar/Land Rover and Porsche, and facilities containing 500 service bays staffed by approximately 280 technicians. It is expected to generate approximately $1.7 billion in annualized revenue and be immediately accretive to the Company's earnings per share upon closing.
This transaction, together with the recent acquisitions of Stone Mountain Honda and Stone Mountain Toyota, will expand Group 1's Atlanta presence from three to 15 dealerships, making the city the Company's second largest market based on revenue and its ninth market in the U.S. with five or more stores.
Atlanta is a robust automotive market with strong fundamentals. The city is the sixth largest MSA1 and seventh largest DMA2 in the U.S., as well as the fastest-growing MSA and largest luxury vehicle market in the Southeast, with 21% luxury vehicle market share3. The city's real GDP growth outpaced the national average growth rate by over 50% from 2014 to 20234 and the average household income within Hennessy's markets specifically is approximately $150,000 per year5.
"For 62 years, our family company has been a cornerstone of the Atlanta automotive community, excelling in vehicle sales, servicing and leasing," said Peter Hennessy. "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."
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 transaction is expected to close by year-end 2026, subject to regulatory approvals, OEM approvals and customary closing conditions.
J.P. Morgan Securities LLC is acting as exclusive financial advisor, and Hill Ward Henderson and Vinson & Elkins LLP 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.
For additional information about this transaction, please see the Form 8-K that will be filed in connection with this transaction.
Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of more than 445 franchises generating more than $10 billion in client proceeds, including two of the largest transactions in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group and Leith Automotive to Holman. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors is the only firm in auto retail exclusively dedicated to sell-side advisory, providing its clients the assurance of a conflict-free approach.
Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, the industry authority on dealership buy/sell market trends and valuations and includes Kerrigan Advisors’ signature blue sky charts, multiples and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases The Kerrigan Index™ comprised of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2025 Kerrigan Dealer Survey, click here. To read the 2025 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.
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