April 14, 2014
Boyd Group Income Fund Acquires U.S. Collision Repair Company with 25 locations
- Boyd Group strengthens position in Chicagoland market with the acquisition of Collision Revision -
Not for distribution to U.S. newswire services or for dissemination in the United States
Winnipeg, Manitoba - April 14, 2014 - Boyd Group Income Fund (TSX: BYD.UN) (“the Fund,” “Boyd” or “the Boyd Group”) today announced that it has signed a definitive agreement and concurrently closed the acquisition of Dora Holdings, LLC , which owns and operates 25 collision repair centers in Illinois, Indiana and Florida under the trade name “Collision Revision”. The acquisition is expected to be immediately accretive to the Fund’s earnings, and cash flow. Collision Revision generated sales of approximately US$50 million for the trailing twelve months ended December 31, 2013.
“We are very pleased to announce another multi-shop acquisition to further our geographic footprint,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “In addition to being immediately accretive to earnings, adding the Collision Revision locations gives Boyd a commanding presence in the greater Chicagoland market. This is our seventh major multi-shop acquisition since 2010 and reinforces our position as the largest multi-shop operator in North America, in terms of number of locations. This has strategic value for Boyd relative to trends within the collision repair industry that have seen insurance companies consolidating direct repair program volumes with fewer providers.”
Of the 25 purchased locations, 15 are in the Chicago media market, including one in northwest Indiana. Collision Revision also has eight locations in the state of Illinois south of the Chicago market, including shops in the cities of Peoria, Bloomington and Springfield. The two other purchased locations are in Ft. Wayne, Indiana and Ft. Myers, Florida. With the acquisition of the 25 Collision Revision locations, Boyd will operate 288 collision repair locations across 15 U.S. states and five Canadian provinces.
The total purchase price consideration of approximately of $32.5 million, subject to working capital adjustments, will be funded through a combination of seller financing and use of Boyd’s revolving credit facility.
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:
President & CEO
Tel: (204) 594-1770
VP & CFO
Tel: (204) 594-1771
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 258)
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.
Boyd Group Services Inc.
1745 Ellice Avenue
Boyd Group Services Inc.
1745 Ellice Avenue
Winnipeg, Manitoba, R3H 1A6