May 30, 2014
Boyd Group Income Fund Acquires Netcost Claims Services
Winnipeg, Manitoba - May 30, 2014
Not for distribution to U.S. newswire services or for dissemination in the United States
- Strengthens Boyd Group’s Third Party Administration Business -
- Boyd Group Income Fund (TSX: BYD.UN) (“the Fund,” “Boyd” or “the Boyd Group”) today announced that Boyd, through a subsidiary, has signed a definitive agreement and concurrently closed the acquisition of Netcost 866netglass LLC, operating as Netcost Claims Services (“NCS”). NCS generated sales of approximately US$25 million in 2013.
NCS expands Boyd Group’s existing third party administration business, Gerber National Glass Services (“GNGS”), that offers first notice of loss, auto glass and related services through its network of auto glass providers across the U.S. Third party administrators (“TPAs”) serve the fleet management and insurance-funded segments of the auto glass repair industry by providing a complete outsourced solution from the time that a claim is made. Both NCS and GNGS then manage the claim to ensure that the necessary repairs are completed in a quality manner and at a competitive price. NCS also offers roadside assistance services and has the additional benefit of owning and operating its own call centre.
“This is a very important development that will enhance our current glass repair business and enable our U.S. auto glass business to grow its relationship with its fleet management and insurance industry customers.” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “The addition of a call centre to the GNGS network of 3,000 independently-owned auto repair locations in the U.S. will considerably strengthen our value proposition.”
The total purchase price consideration of approximately of $3.0 million, subject to post closing adjustments, will be funded through a combination of available cash and seller financing.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.
In terms of locations, The Boyd Group Inc. is the largest operator of non-franchised collision repair centers in North America 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
) and Hansen Collision. 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 Gerber National Glass Services, 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. For more information on The Boyd Group Inc. or Boyd Group Income Fund, please visit our website at (http://www.boydgroup.com
).For further information, please contact:
Caution concerning forward-looking statements7
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.