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- Boyd Group enters Florida market with eight new locations -
WINNIPEG, Jan. 4, 2012 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) ("the Fund," "Boyd," or "the Boyd Group") today announced that it has completed the acquisition of Master Collision Repair, Inc. ("Master"), which was previously announced on December 21, 2011. The total consideration for the transaction of approximately US$11.5 to $12.0 million, subject to normal post-closing working capital adjustments, was funded with a combination of cash, third-party financing, and a seller take-back note. No new equity was issued related to the transaction. The acquisition is expected to be immediately accretive to the Fund's earnings and cash flows.
"We are very pleased to have completed the acquisition of Master, which marks Boyd's entry into the Florida collision repair market," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "This is our second completed multi-location collision operator acquisition over a six-month period, following our acquisition of Cars Collision in July 2011. These transactions are consistent with our strategy of looking for opportunities for accelerated growth through the acquisition of multi-location operators in attractive geographic markets that can expand our footprint in North America and solidify our leadership position in the industry. We believe that Master will be an excellent strategic fit with Boyd's existing organization and will further enhance our competitive position in the United States."
With the Master acquisition, the Fund adds eight new locations to its North American footprint, bringing the total number of locations to 175 across 14 U.S. states and four Canadian provinces.
About The Boyd Group Inc.
The Boyd Group Inc. is the largest operator of collision repair centres in North America. The Company operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass, as well as in 14 U.S. states under the trade names Gerber Collision & Glass, True2Form, Cars, and Master Collision Repair. The Company also operates Gerber National Glass Services, an auto glass repair and replacement referral business with approximately 3,000 affiliated service providers throughout the United States. For more information on The Boyd Group Inc. or Boyd Group Income Fund, please visit our website at www.boydgroup.com.
About The Boyd Group Income Fund
The Boyd Group Income Fund 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 Boyd Group Income Fund units trade on the Toronto Stock Exchange (TSX) under the symbol BYD.UN.
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", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. 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: the economic downturn; loss of key customers; fluctuations in cash distributions; dependence on the Fund's operating subsidiaries to pay its interest obligations; loss of services of key senior management personnel; damage to the Company's brand; variation in the number of insurance claims; margin pressure; management of credit and refinancing risks; responding to changes in the market environment; technology risks; the management of key supplier relationships; capital expenditures; competition from established competitors and new entrants in the businesses in which the Company operates; employee relations; the ability to complete acquisitions of collision repair facilities and other businesses and to integrate these acquisitions successfully; the ability to identify start-up locations and reach anticipated profitability levels; potential discovery of undisclosed liabilities associated with acquisitions; energy costs; weather conditions; operational and infrastructure risks including possible equipment failure and performance of information technology systems; fluctuations in operating results and seasonality; ability to expand into the United States; insurance coverage of sufficient scope to satisfy any liability claims; environmental, health & safety risk; interest rate fluctuations and general economic conditions; quality of corporate governance; pending and proposed legislative or regulatory developments including the impact of changes in laws, regulations and the enforcement thereof; quality of internal control systems; fluctuations in foreign currencies; fluctuations in the cost of benefit plans; impact of government owned insurance; and the possible impacts from public health emergencies, international conflicts and other developments including those relating to terrorism; 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.
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