July 3, 2012
Boyd Group Income Fund Completes Acquisition of Pearl Auto Body in the U.S.
- Boyd Group adds six new locations in Colorado -
Winnipeg, Manitoba — July 3, 2012 — Boyd Group Income Fund (TSX: BYD.UN) (“the Fund,” “Boyd,” or “the Boyd Group”) today announced that it has completed the acquisition of the assets of Pearl Auto Body (“Pearl”), which was previously announced on June 20, 2012. The total consideration for the transaction of approximately US$4.4 million, subject to normal post-closing working capital adjustments, was funded with a combination of cash, third-party financing, and a seller note. No new equity was issued related to the transaction.
“We are very pleased to complete the acquisition of Pearl and double our number of repair centers in Colorado to 12,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “Pearl represents our third multi-location collision operator acquisition over the last 12 months. This is in line with our strategy of being alert to 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. These acquisitions also provide us an opportunity to leverage existing relationships with insurance companies that have Direct Repair Programs. We believe that Pearl will be an excellent fit with Boyd and will further enhance our competitive position.”
With the Pearl acquisition, the Fund now operates 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, Cars, Master Collision Repair, and Pearl Auto Body. 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.
For further information, please contact:
Brock Bulbuck
President & CEO
Tel: (204) 895-1244
brock.bulbuck@boydgroup.com
Salvador Diaz
Investor Relations
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 242)
sdiaz@equicomgroup.com
Dan Dott
Chief Financial Officer
Tel: (204) 895-1244
dan.dott@boydgroup.com
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.
Corporate Headquarters
Boyd Group Services Inc.
Boyd Group Services Inc.
1745 Ellice Avenue
Winnipeg, Manitoba, R3H 1A6
Email: info@boydgroup.com
Tel: 204-895-1244
Fax: 204-895-1283