Driving the news: Group 1 Automotive announced today (July 30) that it has signed an agreement to acquire Hennessy Automotive Companies in a deal expected to add about $1.7 billion in annual revenue.
The transaction is worth an estimated $1.3 billion, including blue sky, real estate and operating assets.
Group 1 plans to finance the transaction with new debt, backstopped by a bridge commitment, the company said in a release.
For context: Hennessy’s portfolio includes 10 dealerships containing “key luxury and import brands, including Lexus, Jaguar/Land Rover and Porsche, and facilities containing 500 service bays staffed by approximately 280 technicians,” Group 1 said.
This acquisition follows the public retailer’s June 30 acquisition of Stone Mountain Honda and Stone Mountain Toyota in metro Atlanta.
With the Hennessy dealerships, Group 1 will own 15 dealerships in metro Atlanta, which will make it the group’s second-largest market based on revenue and the ninth U.S. market where it owns five or more stores, according to the company.
Group 1 said Atlanta is one of the fastest-growing, highest-income metro areas in the U.S., with the Southeast's largest luxury vehicle market share at 21%. and households in Hennessy's markets average around $150,000 in annual income.
Worth mentioning: Hennessy Automotive, represented by Kerrigan Advisors in the sale, has operated for more than six decades.
"For 62 years, our family company has been a cornerstone of the Atlanta automotive community, excelling in vehicle sales, servicing and leasing," Peter Hennessy said. "Under Group 1's stewardship, I know this strong legacy and deep commitment to Atlanta will continue…”
What they’re saying: Daryl Kenningham, CEO of Group 1, said the group is privileged to acquire the “world class business” and said the Hennessy family has a tremendous reputation.
"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 a release. "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…”
You can see this deal announcement and many more throughout the entire year by visiting the CDG Buy/Sell tracker at CDGbuysell.com, presented by Presidio.
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