Group 1 Automotive will buy all 10 Hennessy Automobile Companies dealerships in Atlanta for $1.3 billion, the auto retailer announced in a news release and government filing July 30.
The acquisition is part of Group 1’s “cluster” strategy — owning multiple stores and brands in the same market, CEO Daryl Kenningham said in the news release. The auto retailer has 9 markets in the U.S. with five or more stores in the same area, it said in a second quarter earnings presentation July 30.
The 10 Hennessy rooftops will generate about $1.7 billion in annualized revenue, Group 1 said in a second quarter earnings presentation released July 30. That is about $170 million per store on average, the presentation said. Seventy-five percent of Hennessy’s revenue comes from luxury brands such as Lexus and Porsche, the presentation also said.
The group sold 22,000 new and used vehicles in 2025.
“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,” Kenningham said in the news release.
Group 1 will acquire:
The deal also includes one collision center, Group 1 said.
“Group 1 shares our customer-focused philosophy, which will remain the foundation as they move our dealerships into the future,” Peter Hennessy, president of Hennessy Automobile Companies, said in the Group 1 news release.
The Houston-based auto retailer expects the Hennessy acquisition to close by the end of the year. Group 1 has acquired and integrated new dealerships this year with total expected annual revenues of $340 million, it said in a second quarter earnings release July 30. The dealership group may also pay an additional amount above the $1.3 billion for Hennessy’s remaining inventory assets; the final amount will be determined based on a physical inventory conducted at or near closing, Group 1 said in a government filing July 30.
During the second quarter, Group 1 also acquired Stone Mountain Toyota in Lilburn and Stone Mountain Honda Snellville, also located in the Atlanta market in Georgia. The dealership group expects those two stores to generate $205 million in annual revenues. The acquisitions, alongside the Hennessy stores, will bring Group 1’s Atlanta presence to 15 dealerships, it said in the earnings presentation.
J.P. Morgan Securities LLC and Hill Ward Henderson and Vinson & Elkins LLP advised Group 1 in the transaction. Kerrigan Advisors and Holland and Knight advised Hennessy Automobile Companies.
Group 1 ranks No. 4 on Automotive News’ 2026 list of the top 150 dealership groups based in the U.S., selling 224,166 new vehicles in 2025.
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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