- Boyd Group increases its presence in Colorado with the acquisition of Pearl Auto Body -
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WINNIPEG, June 20, 2012 /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 the assets of Pearl Auto Body ("Pearl"), which owns six collision repair centers in the Denver, Colorado area under the trade name Pearl Auto Body. Pearl represents an attractive acquisition that is expected to be immediately accretive to the Fund's earnings and cash flows.
"The acquisition of Pearl strengthens our presence in the Denver market where we will double our number of locations to 12 with this transaction," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "Pearl's business model and customer base are similar to Boyd's, which should lead to a smooth integration with our existing business. Like the Boyd Group, Pearl recognizes the trend of U.S. insurance companies consolidating Direct Repair Program volumes with fewer providers, and has developed strong relationships with its insurance company clients. We believe that we can leverage this further given the Boyd Group's growing U.S. footprint and existing relationships with other insurance companies that have a strong presence in Colorado. Being the largest multi-location collision repair operator in North America in terms of annual sales and number of locations, the Boyd Group is committed to solidifying its industry-leading position and continues to look for opportunities to grow its operations."
The transaction, valued at approximately US$4.4 million subject to working capital adjustments, is expected to be completed in July 2012, subject to certain closing conditions. Funding for the transaction will be through a combination of cash, third-party financing and a seller note. The Fund will not be issuing any new equity to fund the transaction and, therefore, the transaction will not result in equity dilution to unitholders.
Pearl is one of the leading providers of automotive collision repair services in the Denver market. With six operating locations, Pearl generated sales of approximately US$13 million over the last 12 months. The Fund forecasts that Pearl will add annual Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") of approximately $1.0 million to its consolidated EBITDA, including synergies. Upon completion of the acquisition, the Boyd Group will operate a total of 186 locations 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, 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: dependence upon The Boyd Group Inc. and its Subsidiaries; cash distributions not guaranteed; inability to successfully integrate acquisitions; economic downturn; 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; 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; 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.
For further information:
Tel: (204) 895-1244
Tel: (416) 815-0700 / 1-800-385-5451 (ext. 242)
VP & CFO
Tel: (204) 895-1244