The Boyd Group (Gerber Collision & Glass) recently announced that it has entered into a definitive agreement to acquire the assets of Pearl Auto Body, which owns six collision repair centers in the Denver, Colo., area. The transaction, valued at approximately $4.4 million, is expected to be completed in July 2012.
The transaction will be funded through a combination of cash,
third-party financing and a seller note. The Boyd Group Income Fund will not be issuing
any new equity to fund the transaction and, therefore, the transaction
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 chief executive officer 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. Being 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."
According to Boyd, Pearl is one of the leading providers of automotive collision repair services in the Denver market. With six operating locations, Pearl generated sales of approximately $13 million over the past 12 months. The Fund forecasts that Pearl will add annual Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) of approximately $1 million to its consolidated EBITDA, including synergies.
Upon completion of the acquisition, The Boyd Group will operate a total of 186 locations across 14 U.S. states and four Canadian provinces.
More information:
