June 22, 2012—The Boyd Group Income Fund has entered into a definitive agreement to acquire Pearl Auto Body, a six-shop collision repair operation based in Denver.
The $4.4 million transaction is expected to be completed in July, the Boyd Group said. The six Pearl Auto Body locations, which generated $13 million in revenue during the past 12 months, will continue to operate under the same trade name.
The Boyd Group said it will fund the transaction through a combination of cash, third party financing and a seller note. The company will not issue any new equity to fund the transaction, so it will not result in equity dilution to unitholders.
"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 CEO 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.”
Upon completion of the acquisition, the Boyd Group will operate a total of 186 collision repair locations throughout 14 U.S. states and four Canadian provinces.
