June 3, 2013—The Boyd Group Income Fund has acquired majority ownership in the retail auto glass business of Glass America Inc.
Glass America operates 61 auto glass locations throughout 23 U.S. states under the trade names Glass America and Auto Glass Services.
The Boyd Group already operates Gerber National Glass Services, an auto glass repair and replacement business with roughly 3,000 affiliated service providers throughout 12 U.S. states. With the acquisition of Glass America, the Boyd Group said it is now the second largest retail auto glass service business in the United States in terms of footprint and annual sales.
Brock Bulbuck, president and CEO of the Boyd Group, said the company will now offer glass replacement services in 28 U.S. states to 50 percent of the U.S. population.
Glass America and Gerber National Glass Services together are expected to generate more than $60 million of annual revenue. Glass America generated revenue of $43 million in 2012, while Gerber National Glass Services generated revenue of $19 million.
"This acquisition is very attractive from both a strategic and a financial point of view. The automotive glass restoration business is a natural and complimentary extension of our industry leading collision repair business,” Bulbuck said. “This retail expansion, in combination with our already established nationwide auto glass network, Gerber National Glass Services, significantly improves our positioning with U.S. insurance company customers. Financially, we expect this acquisition to be immediately accretive to our earnings and cash flow, with significant synergy opportunities available over time as the Glass America operations are integrated into Gerber Glass's operating model. It will also better position our glass business for growth alongside our growing collision business."