Boyd Group Income Fund has agreed to buy 11 collision repair shops in Orlando, Fla., for US$7.3 million.
Like this article? Sign up to receive our weekly news blasts here.Boyd signed an agreement to acquire the assets of The Recovery Room of Central Florida Inc. (TRR), which owns the 11 collision repair shops under the trade name The Recovery Room Collision Repair. The acquisition was scheduled to close at the end of day on Nov. 16, 2012.
"Acquiring TRR is another important strategic undertaking that will double our number of locations in Florida" said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "Currently, there is no other major multi-location collision operator in Florida, and we are the first to build significant presence in the state. We believe Florida is an attractive market for our business and has many growth opportunities. Like the Boyd Group, TRR's business model provides for a fully integrated service offering and its customer base consists largely of automobile insurers. These similarities should lead to a smooth integration with our existing business. We also believe that we can add to TRR's customer base by leveraging our existing relationships with other insurance companies. As the largest multi-location collision repair operator in North America in terms of annual sales and number of locations, the Boyd Group is committed to solidifying its industry leading position and continues to look for opportunities to grow its operations."
The purchase will be funded through a combination of cash, bank debt and third-party financing. Boyd Group Income Fund said it will not be issuing any new equity to fund the transaction and, therefore, the transaction will not result in equity dilution to unitholders.
With 11 locations, TRR is expected to generate annual sales of approximately US$23 million. The Fund forecasts that TRR will add annual earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately US$1.6 million to its consolidated EBITDA, including synergies. The Boyd Group is the largest multi-site operator of automotive collision repair service centres in North America with 205 locations across 14 U.S. states and 4 Canadian provinces.
The company operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass (http://www.boydautobody.com), as well as in 14 U.S. states under the trade names Gerber Collision & Glass (http://www.gerbercollision.com) 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, visit www.boydgroup.com.
