Press release from CNW Group
Boyd Group Income Fund Acquires U.S. Collision Repair Company with 25 Locations
Tuesday, September 03, 2013
Boyd Group Income Fund Acquires U.S. Collision Repair Company with 25 Locations15:00 EDT Tuesday, September 03, 2013
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
- Boyd Group enters Michigan market with acquisition of Hansen Collision and Glass -
WINNIPEG, Sept. 3, 2013 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) ("the Fund," "Boyd" or "the Boyd Group") today announced that it has signed a definitive agreement and concurrently closed the acquisition of the shares of HC Capital Group, Inc. (the "Acquisition"), which owns and operates 25 collision repair centers in western Michigan and north-eastern Indiana under the trade name "Hansen Collision and Glass". The acquisition is expected to be immediately accretive to the Fund's earnings and cash flows. Hansen Collision and Glass generated sales of approximately US$38 million for the trailing twelve months ended June 30, 2013.
"We are very pleased to announce another multi-shop acquisition," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "This will be our sixth major multi-shop acquisition since 2010 and reinforces our position as the largest multi-shop operator in North America. With this Acquisition, we now have 253 collision repair locations across 15 U.S. states and five Canadian provinces. Hansen Collision and Glass has a business model and customer base similar to Boyd's and immediately creates a strong presence in Michigan as well as provides us with additional growth opportunities. This transaction demonstrates our commitment to our stated growth strategy while reinforcing our position as an industry-leader."
The total purchase price consideration of approximately US$23.6 million, subject to working capital adjustments, will be funded through a combination of cash, seller notes and a US$2.0 million unit issuance to the sellers at a fifteen-day weighted-average price of $24.83 per unit.
About The Boyd Group Inc.
The Boyd Group Inc. is believed to be the largest operator of collision repair centres in North America. The Company operates locations in five Canadian provinces under the trade name Boyd Autobody & Glass (http://www.boydautobody.com), as well as in 15 U.S. states under the trade names Gerber Collision & Glass (http://www.gerbercollision.com), Autocrafters and Hansen Collision and Glass. The Company is also a major retail auto glass operator in the U.S. with locations across 28 U.S. states under the trade names Gerber Collision & Glass, Glass America, Auto Glass Services, Auto Glass Authority and S&L Glass. 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.
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.
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", "forecast", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Forward-looking statements in this press release include the likelihood of the Acquisition and the Offering being completed on the stated terms or at all and the accretive nature of the Acquisition to the Fund's earnings and cash flows.
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; operational performance; 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; ability to successfully integrate acquisitions and realize synergies; regulatory risks; 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. All forward-looking statements are made as of this date and the Fund assumes no obligation to update such statements.
SOURCE: Boyd Group Income Fund
For further information:
President & CEO
Tel: (204) 895-1244
Chief Financial Officer
Tel: (204) 895-1244
Tel: (416) 815-0700 ext.258