Group 1 Automotive Inc.
10/21/2026 | Press release | Distributed by Public on 10/21/2026 10:41
Asset Transaction (Form 8-K)
Item 2.01 Completion of Acquisition or Disposition of Assets.
As previously disclosed, on July 30, 2026, Group 1 Automotive, Inc. (the "Company") entered into a Purchase and Sale Agreement (the "Purchase Agreement") with Hennessy Automobile Companies, Inc. and certain of its affiliated dealership, collision center and real estate holding entities (collectively, "Hennessy"), and solely for the limited purposes set forth therein, Peter R. Hennessy, Mark W. Hennessy and Stephen R. Hennessy, pursuant to which the Company agreed to acquire all of the assets (other than certain excluded assets) relating to the operation of 10 automobile dealerships and one collision center located in the greater Atlanta, Georgia market, together with certain related dealership real estate and leasehold interests (the "Hennessy Acquisition"). The Company also agreed to assume certain specified liabilities of Hennessy, including obligations arising after the closing under assumed contracts.
On October 19, 2026, the Company and certain of its subsidiaries completed the Hennessy Acquisition. The aggregate consideration paid by the Company was approximately $1.3 billion, subject to customary post-closing adjustments, including a true-up of the operating asset purchase price within 90 days after closing. At the closing, $80.0 million of the purchase price was deposited into an indemnity escrow account to secure Hennessy's post-closing indemnification obligations under the Purchase Agreement, with 25% to be released to Hennessy three months after the closing, an additional 25% to be released nine months after the closing, and the remainder to be released 18 months after the closing, in each case subject to pending claims, if any.
The Hennessy Acquisition was funded with the net proceeds from the previously announced private placement of $625 million of 6.250% senior notes due 2032 and $625 million of 6.625% senior notes due 2035, together with cash on hand.
The foregoing description of the Purchase Agreement and the Hennessy Acquisition does not purport to be complete and is qualified in its entirety by reference to the complete text of the Purchase Agreement, which is attached hereto as Exhibit 2.1, and the First Amendment to Purchase and Sale Agreement, dated as of October 2, 2026, which is attached hereto as Exhibit 2.2, each of which is incorporated herein by reference.
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