|Boyd Group to acquire Pearl Auto Body|
|News - Collision Repair|
|Thursday, 21 June 2012 15:12|
Winnipeg, Manitoba -- June 21, 2012 -- Boyd Group has announced that it has entered into a definitive agreement to acquire the assets of Pearl Auto Body ("Pearl"), which owns six collision repair centers in the Denver, Colorado area under the trade name Pearl Auto Body. Pearl represents an attractive acquisition that is expected to be immediately accretive to the Fund's earnings and cash flows.
"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."
The transaction, valued at approximately $4.4 million U.S. subject to working capital adjustments, is expected to be completed in July 2012, subject to certain closing conditions. Funding for the transaction will be through a combination of cash, third-party financing and a seller note. The Fund will not be issuing any new equity to fund the transaction and, therefore, the transaction will not result in equity dilution to unitholders.
Upon completion of the acquisition, the Boyd Group will operate a total of 186 locations across 14 U.S. states and four Canadian provinces.
|Last Updated on Thursday, 21 June 2012 15:13|
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