Group 1 Automotive recently announced it has signed a definitive agreement to acquire the dealership assets and real estate of Hennessy Automobile Companies, 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.
