Group 1 Automotive (NYSE: GPI) has agreed to acquire the dealership assets and real estate of Hennessy Automobile Companies in a transaction valued at approximately $1.3 billion, significantly expanding its presence in the Atlanta metropolitan area and advancing the company’s strategy of building high-density dealership clusters in major growth markets.
The acquisition includes 10 dealerships representing luxury and import brands, including Lexus, Jaguar Land Rover and Porsche, along with facilities housing approximately 500 service bays staffed by about 280 technicians. Group 1 expects the portfolio to generate roughly $1.7 billion in annualized revenue and to be immediately accretive to earnings per share following the transaction’s closing.
The deal represents one of Group 1’s largest strategic investments in recent years and substantially increases its scale in Atlanta. Combined with the company’s recently announced acquisitions of Stone Mountain Honda and Stone Mountain Toyota, the transaction will expand Group 1’s footprint in the market from three dealerships to 15. Atlanta will become the company’s second-largest market by revenue and its ninth U.S. market with five or more dealership locations.
The acquisition reinforces Group 1’s long-standing cluster strategy, which focuses on concentrating dealerships in attractive metropolitan markets where operational scale can improve efficiency, enhance customer service and support higher margins. By increasing its geographic density, the company expects to benefit from shared operational resources, expanded service capacity and stronger regional brand recognition while creating additional opportunities for long-term earnings growth.
President and Chief Executive Officer Daryl Kenningham said the transaction builds on a strategy that has been successfully executed in major markets including Houston and Boston. He noted that Atlanta’s demographic growth, premium vehicle demand and concentration of high-performing dealerships make it an attractive market for continued investment. Kenningham also recognized the Hennessy family’s longstanding reputation within the Atlanta automotive community, describing the acquisition as an opportunity to build on an established business with strong local relationships.
Atlanta’s market fundamentals were a key factor supporting the investment. The metropolitan area is the sixth-largest metropolitan statistical area and the seventh-largest designated market area in the United States. It is also the fastest-growing major metropolitan area in the country and the largest luxury vehicle market in the Southeast, with luxury vehicles accounting for approximately 21% of market share. Group 1 also cited economic growth that has outpaced the national average over the past decade and average household income of roughly $150,000 within Hennessy’s primary operating markets.
For Hennessy Automobile Companies, the transaction concludes more than six decades as a family-owned business. Founded 62 years ago, the company has established itself as a leading retailer of luxury vehicles in the Atlanta region through vehicle sales, leasing and aftersales service. Peter Hennessy said Group 1’s customer-focused operating philosophy made it a strong fit to continue the company’s legacy and commitment to the Atlanta market.
Group 1 plans to finance the approximately $1.3 billion acquisition, which includes the dealership businesses, real estate and blue-sky value, through new debt supported by a bridge financing commitment. The transaction is expected to close by the end of 2026, subject to regulatory approvals, manufacturer approvals and customary closing conditions.
J.P. Morgan Securities LLC is serving as exclusive financial advisor to Group 1, while Hill Ward Henderson and Vinson & Elkins LLP are acting as legal advisors. Kerrigan Advisors is serving as transaction advisor to Hennessy Automobile Companies, with Holland & Knight providing legal counsel.
The acquisition further strengthens Group 1’s position as one of the largest automotive retailers in North America and the United Kingdom. The Fortune 250 company currently operates 251 dealerships, representing 312 franchises and 37 automotive brands, and continues to use strategic acquisitions in high-growth markets to expand its dealership network, increase operating scale and enhance long-term shareholder returns.
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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