Group 1-Hennessy deal, valued at $1.3 billion, officially closes

A deal estimated to be the third largest in auto retail history has closed.

Group 1 Automotive’s purchase of Atlanta-based Hennessy Automobile Companies, which was first announced in late July, closed on Oct. 19, the seller’s advisor Kerrigan Advisors said Wednesday.

Group 1 acquires Hennessy’s 10 dealerships, which include two Lexus, two Porsche and three Jaguar Land Rover franchises, along with Honda, Cadillac, Ford and Lincoln stores.

Kerrigan estimates the deal is the third largest deal ever in auto retail, based on blue sky value. Citing Group 1 public filings, Kerrigan said the deal is valued at roughly $1.3 billion, including blue sky, real estate and operating assets. The blue sky value is estimated at $1 billion, Kerrigan said, which is an all-time high for a 10-store group.

Annualized revenue for the Hennessy dealerships is $1.7 billion. They combined to move more than 22,000 retail units last year, Kerrigan said

The stores included in the deal are: Porsche North Atlanta, Porsche Atlanta Northwest, Lexus of Atlanta, Lexus of Gwinnett, JLR Buckhead, Land Rover North Atlanta, Land Rover Gwinnett, Honda of Woodstock, Hennessy Cadillac and Hennessy Ford Lincoln.

Each of these dealerships are in Metro Atlanta.

“It was a tremendous honor to represent the Hennessy family and lead this historic transaction,” Kerrigan Advisors managing director Ryan Kerrigan said in a news release. “For 62 years, Hennessy has set the standard for luxury automotive retail in Atlanta. In choosing us to lead this sale, the Hennessy family entrusted us with far more than a business – they entrusted us with a legacy six decades in the making.

“Seeing that legacy find the right home with Group 1, a company that values the Hennessy name, its employees and its customers, is exactly the outcome we worked toward. We are grateful to the Hennessy family and proud of what our team achieved together,” Kerrigan said.

Hennessy Automobile Companies Peter Hennessy added: “When my father, Robert Hennessy, opened our first store in 1964, he built it on a simple belief: take care of your people and your customers, and everything else will follow.

“For 62 years, that belief has guided our family. I am deeply grateful to every Hennessy employee, whose dedication made this company what it is, and to our Atlanta customers who trusted us with their vehicles and their families. When it came time to choose the next steward of this legacy, Group 1 was the perfect match. They share our customer-focused philosophy and respect our people, and I could not be more confident in the hands our dealerships are in.”

Group 1 president and CEO Daryl Kenningham said in the release: “Our strategy focuses on premium brands in attractive growth markets. This acquisition expands our presence in the Atlanta market. The Hennessy family has a tremendous reputation in Atlanta, and we feel privileged to welcome this world-class business and its employees to Group 1. We also thank Kerrigan Advisors for the professionalism and care they brought to this process.”