Group 1 Automotive closes $1.3 billion purchase of Hennessy's Atlanta dealerships

Group 1 Automotive has closed its roughly $1.3 billion purchase of the Hennessy dealership group, adding 10 stores and a collision center in the greater Atlanta market, the Houston-based company said in an 8-K filed Wednesday.

The deal closed on Oct. 19. Group 1 bought nearly all of the assets used to run the stores from Hennessy Automobile Companies and affiliated entities, along with related dealership real estate and leasehold interests, according to the filing. It also took on certain specified liabilities, including obligations under contracts it assumed.

The $1.3 billion price is subject to customary post-closing adjustments, including a true-up of the operating asset purchase price within 90 days.

The stores

According to an amendment to the purchase agreement attached to the filing, the group includes Porsche North Atlanta, Porsche Atlanta Northwest, Lexus of Gwinnett, Lexus of Atlanta, Jaguar Land Rover Buckhead and Land Rover stores in North Atlanta and Gwinnett. It also includes Hennessy Cadillac, Hennessy Ford Lincoln, Honda of Woodstock and the Hennessy Collision Center.

Group 1 first agreed to the purchase on July 30 and amended the agreement on Oct. 2.

How it was paid for

Group 1 funded the deal with net proceeds from a previously announced private placement of $625 million of 6.250% senior notes due 2032 and $625 million of 6.625% senior notes due 2035, plus cash on hand, the filing said.

At closing, $80 million of the price went into an indemnity escrow account to back Hennessy's post-closing obligations. A quarter is set to be released after three months, another quarter after nine months and the rest after 18 months, subject to any pending claims.

Group 1 said it will file financial statements for the acquired business and pro forma financial information within 71 days.

By the numbers

• Purchase price: about $1.3 billion, before adjustments
• Dealerships acquired: 10, plus one collision center
• Indemnity escrow: $80 million
• New senior notes used for funding: $1.25 billion total

Sources

1. Group 1 Automotive, Inc., Form 8-K (Item 2.01) with Exhibit 2.1 purchase and sale agreement dated July 30, 2026, and Exhibit 2.2 first amendment dated Oct. 2, 2026, filed Oct. 21, 2026, accession 0001031203-26-000139

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