Boyd Group Income Fund Acquires U.S. Collision Repair Company with 16 locations
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Boyd Group Gains Market Leadership in SE Michigan with the Acquisition of Collex Collision Experts
WINNIPEG, June 6, 2014 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) ("the Fund," "Boyd" or "the Boyd Group") today announced that its wholly owned subsidiary, The Boyd Group (U.S.) Inc., has signed a definitive agreement and concurrently closed, effective June 2, 2014, the acquisition of Collex Collision Experts Inc. and Collex Collision Experts of Florida Inc. ("Collex"), which own and operate 16 collision repair centres in Michigan and Florida. The acquisition is expected to be immediately accretive to the Fund's earnings and cash flow. Collex generated sales of approximately US$46 million for the trailing twelve months ended January 2014.
"The acquisition of Collex demonstrates our continuing ability to add attractive multi-shop acquisitions as part of our three-pronged growth strategy," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "Collex, along with our previous acquisition of Hansen Collision and Glass, provides us with a leading market position in Michigan and increases our footprint in Florida. This reinforces our position as the largest multi-shop operator in North America in terms of number of locations and further strengthens our ability to serve our U.S. insurance industry clients."
Of the 16 locations purchased, 13 are in southeast Michigan and three are in Southwest Florida. This brings the number of Boyd collision repair locations to 302 across 15 states.
The total purchase price consideration of approximately $45.0 million, subject to post closing adjustments, will be funded through a combination of seller financing and use of Boyd's revolving credit facility. This purchase price reflects a valuation multiple that is within the range of other recent multi-location acquisitions completed by Boyd.
About The Boyd Group Income Fund
The Boyd Group Income Fund (http://www.boydgroup.com) is an unincorporated, open-ended mutual fund trust created for the purposes of acquiring and holding certain investments, including a majority interest in The Boyd Group Inc. and its subsidiaries. The Units trade on the Toronto Stock Exchange (TSX) under the symbol BYD.UN.
About The Boyd Group Inc.
The Boyd Group Inc. is the largest operator of non-franchised collision repair centers in North America in terms of number of locations and one of the largest in terms of sales. The Company operates locations in five Canadian provinces under the trade name Boyd Autobody & Glass (http://www.boydautobody.com), as well as in 15 U.S. states under the trade names Gerber Collision & Glass (http://www.gerbercollision.com), Hansen Collision and Collision Revision. The Company is also a major retail auto glass operator in the U.S. with locations across 28 U.S. states under the trade names Gerber Collision & Glass, Glass America, Auto Glass Services, Auto Glass Only, Auto Glass Authority, S&L Glass and Hansen Auto Glass. The Company also operates two third party administrators that offer first notice of loss, glass and related services. Gerber National Glass Services is an auto glass repair and replacement referral business with approximately 3,000 affiliated service providers throughout the U.S. under the "Gerber National Glass Services" name and "Netcost Claims Services" which in addition to its referral business, also owns and operates its own call center and offers roadside assistance services. For more information on The Boyd Group Inc. or Boyd Group Income Fund, please visit our website at (http://www.boydgroup.com).
Caution concerning forward-looking statements
Statements made in this press release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "forecast", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Forward-looking statements in this press release include the accretive nature of the Acquisition to the Fund's earnings and cash flows.
Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: dependence upon The Boyd Group Inc. and its Subsidiaries; cash distributions not guaranteed; inability to successfully integrate acquisitions; economic downturn; operational performance; rapid growth; loss of key customers; brand management and reputation; insurance risk; quality of corporate governance; tax position risk; risk of litigation; acquisition risk; credit & refinancing risks; dependence on key personnel; employee relations; decline in number of insurance claims; market environment change; reliance on technology; weather conditions; expansion into new markets; fluctuations in operating results and seasonality; increased government regulation and tax risk; Canadian tax related risk; execution on new strategies; operating hazards; energy costs; U.S. health care costs and workers compensation claims; low capture rates; key supplier relationships; capital expenditures; competition; potential undisclosed liabilities associated with acquisitions; foreign currency risk; margin pressure; acquisition and start-up growth and ongoing access to capital; environmental, health and safety risk; interest rates; unitholder liability limitation and the Fund's success in anticipating and managing the foregoing risks.
We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Risk Factors" section of the Fund's Annual Information Form, the "Risks and Uncertainties" and other sections of our Management's Discussion and Analysis of Operating Results and Financial Position and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings.
SOURCE Boyd Group Income FundFor further information:
President & CEO
Tel: (204) 594-1770
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 290)
VP & CFO
Tel: (204) 594-1771