Your Source for Up-To-Date News and Research on the Collision Repair Industry
click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email
SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor
Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide
Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...
Feedback
Letter to the Editor
Thursday December 29
Boyd Group Acquires Master Collision Repair Eight Locations in Florida
The Boyd Group Income Fund, headquartered in Canada, has entered into a definitive agreement to acquire Master Collision Repair, Inc.(MCR), which owns a total of eight collision repair centers in the Tampa, Florida market area under the trade name Master Collision Repair."The acquisition of Master is very strategic as it gives us an industry-leading platform from which to grow in the attractive Florida market, further demonstrating our commitment to expanding our business," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "MCR's business model and customer base are similar to Boyd's, which should result in a smooth integration with our existing business. Further, we assess that there is a tremendous opportunity for accretive add-on growth in Florida, building from the foundation and base of MCR. The acquisition of Master also further solidifies Boyd's leading industry position and enhances our opportunity to capitalize on the trend of U.S. insurance companies consolidating Direct Repair Program volumes and showing increased preference for dealing with large multi-location operators. The Boyd Group, currently the largest multi- location collision repair operator in North America in terms of annual sales and number of locations, continues to look for opportunities to grow its operation. We remain focused on successful execution and integration of acquisitions to increase our profitability and drive value for our unitholders."
The transaction, valued at approximately US$11.5 to 12.0 million subject to working capital adjustments, is expected to be completed in early to mid January, 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.
MCR is a leading provider of automotive collision repair services in the Tampa Bay area, a market in west central Florida. With eight operating locations and additional locations under consideration, MCR generated sales of approximately US$20 million in the 12 months ended October 31, 2011. The Fund forecasts that MCR will add annual Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") of approximately $2.0 - $2.5 million to its consolidated EBITDA, including synergies. Upon completion of the acquisition, the Boyd Group will operate a total of 175 locations spanning 14 U.S. states and four Canadian provinces.
The Boyd Group Inc. is the largest operator of collision repair centers in North America. The company operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass, as well as in thirteen U.S. states under the trade names Gerber Collision & Glass, True2Form, and Cars. 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.
©2011 Collision Repair Industry INSIGHT
All Rights Reserved
FEATURED
LINKS:
INSIGHT Supports the NABC!
Do You?