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-Positions Boyd Group for accelerated growth and expanded market presence-
WINNIPEG, June 28 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) ("the Fund" or "the Boyd Group") today announced that it has entered into a definitive agreement to acquire True2Form Collision Repair Centers, Inc., one of the largest multi-location collision repair companies in the United States. The acquisition is expected to be immediately accretive to the Fund's distributable cash per unit.
"The acquisition of True2Form is a significant strategic move for the Boyd Group as it allows us to enhance our presence in the eastern United States with an additional 37 locations in states and markets that we do not currently operate in, thereby complementing our existing network," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "True2Form is also attractive to us because of its strong leadership team, its deep operational expertise and its tradition of providing industry-leading repair quality and customer service. While we are continuing our growth strategy of adding between eight to ten new locations per year, this acquisition represents a unique opportunity to acquire a strategic multi-location repair business that can accelerate our growth."
The transaction, valued at approximately $18 million U.S., is expected to be completed by August 1, 2010, subject to certain closing conditions being fulfilled. Funding for the transaction will be a combination of cash, U.S. bank debt, third-party financing and a vendor take-back note. The Fund will not be issuing any new equity to fund the transaction and therefore there will be no equity dilution to unitholders.
True2Form is a private company that operates 37 locations in four U.S. states; 17 locations in North Carolina, eight locations in Ohio seven locations in Maryland and five locations in Pennsylvania. True2Form reported revenues of over $71 million U.S. in the 12 months ended May 31, 2010.
"We are looking forward to being a part of the Boyd Group," added Rex Dunn, CEO of True2Form. "We believe that the combination of our two market leading companies represents an excellent strategic fit and creates an even stronger industry leader which will be better positioned to deliver innovative, best-in-class service to insurance company customers and vehicle owners."
With the acquisition of True2Form, the Boyd Group will significantly expand its footprint and will operate 129 centers in North America; with 92 centers in 11 U.S. states and 37 centers in the four Western Canadian provinces.
About The Boyd Group Inc.
The Boyd Group Inc. is the largest operator of collision repair centres in Canada and among the largest in North America. The Company operates locations in the four western Canadian provinces under the trade name Boyd Autobody & Glass, as well as in seven U.S. states under the trade name Gerber Collision & Glass. 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.
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 subsidiary 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 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.
SOURCE Boyd Group Income Fund
For further information: For further information: Brock Bulbuck, President & CEO, Tel: (204) 895-1244, firstname.lastname@example.org; Salvador Diaz, Investor Relations, Tel: (416) 815-0700, 1-800-385-5451 (ext. 242), email@example.com; Dan Dott, VP & CFO, Tel: (204) 895-1244, firstname.lastname@example.org