Group 1 Automotive to Acquire Hennessy Dealerships for $1.3 Billion

The acquisition includes a high-profile portfolio of luxury and import brands, such as Lexus, Porsche, and Jaguar/Land Rover. By integrating Hennessy’s facilities, which feature 500 service bays and a team of 280 technicians, Group 1 expects to add roughly $1.7 billion in annualized revenue. The transaction is projected to be immediately accretive to the company's earnings per share once finalized.

This move significantly alters the company's footprint in the Southeast. Combined with recent purchases of Stone Mountain Honda and Stone Mountain Toyota, the Hennessy deal will grow Group 1's presence in Atlanta from three to 15 dealerships. This makes the city the company's second-largest market by revenue. To fund the purchase, Group 1 plans to utilize new debt, supported by a bridge commitment.

Daryl Kenningham, President and CEO of Group 1, stated that the acquisition aligns with the company’s cluster strategy of targeting premium brands in high-growth regions. Peter Hennessy, reflecting on the transition after six decades of family ownership, noted that the deal ensures the continuation of the firm's customer-focused philosophy under new stewardship. Finalization of the agreement remains subject to customary closing conditions, including regulatory and OEM approvals.