AcquisitionsJul 30, 2026, 06:26 AM
Group 1 to Acquire Hennessy Auto for $1.3B; Q2 EPS $8.62
AI Summary
Group 1 Automotive announced a definitive agreement to acquire Hennessy Automobile Companies for approximately $1.3 billion, significantly expanding its presence in the Atlanta market. This acquisition, along with two other recent dealership purchases, is expected to add $1.7 billion in annualized revenues and be immediately accretive to earnings per share. Concurrently, the company reported Q2 2026 financial results, with total revenues decreasing 5.6% to $5.4 billion and diluted earnings per share from continuing operations falling 20.0% to $8.62, reflecting consumer affordability issues.
Key Highlights
- Group 1 Automotive to acquire Hennessy Automobile Companies for approximately $1.3 billion.
- The acquisition includes 10 dealerships and one collision center in the Atlanta market.
- Expected to generate approximately $1.7 billion in annualized revenues and be immediately accretive to EPS.
- Q2 2026 total revenues were $5.4 billion, down 5.6% from prior-year quarter.
- Q2 2026 diluted EPS from continuing operations was $8.62, down 20.0% from prior-year quarter.
- Company acquired two additional dealerships (Stone Mountain Toyota and Honda) in Atlanta, adding $205 million in annual revenues.
- Company disposed of four Jaguar/Land Rover dealerships in the U.K., generating $330 million in annual revenues.
- No share repurchases in Q2 2026; year-to-date repurchased 205,190 shares for $72.4 million.
Price Impact
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