One of the biggest U.S. automotive groups just got bigger in the sale of an Atlanta franchise collection that the broker is billing as the third largest on record in the industry.

Group 1 Automotive, which operates more than 250 dealerships in the U.S. and U.K., picked up the 10 stores of Hennessy Automobile Cos., a longtime family-owned group serving Georgia’s largest metro area.

Kerrigan Advisors, which represented Hennessy, estimated the transaction’s historical ranking based on $1 billion in blue-sky value. The deal totaled approximately $1.3 billion.

Hennessy stores produce $1.7 billion in annualized revenue, or more than double the U.S. average, according to Kerrigan.

The Atlanta group got its beginnings with a Cadillac dealership opened in 1964 by Robert Hennessy, who’d worked for General Motors’ holding division after serving in World War II. Three generations of the family have worked in the business as it’s grown.

“When it came time to choose the next steward of this legacy, Group 1 was the perfect match,” said group President Peter Hennessy, son of the group's founder. “They share our customer-focused philosophy and respect our people, and I could not be more confident in the hands our dealerships are in.”

The business attracted Group 1 because of its luxury focus, said Daryl Kenningham, president and CEO. The deal included two Lexus and two Porsche stores, three Jaguar Land Rover dealerships, one Lincoln franchise, and the original Hennessy Cadillac store.  

“Our strategy focuses on premium brands in attractive growth markets,” Kenningham said.

According to Kerrigan, the deal typifies recent buy-sell activity in auto retail.

“Buyers are targeting top franchises that add to their existing regional market share, expecting that scale, combined with efficiencies from [artificial intelligence], will drive significant future earnings growth,” said firm founder and Managing Director Erin Kerrigan.

“Add the premiums high-growth Southeast markets command and a dominant luxury franchise portfolio, and it is clear why Hennessy was such a coveted platform.”