Boyd Group Income Fund announced December 21 that it has entered into a definitive agreement to acquire Master Collision Repair, Inc., which owns a total of eight collision repair centers in the Tampa, Florida market area under the trade name Master Collision Repair. The acquisition is expected to be immediately beneficial to the Fund's earnings and cash flows.
"The acquisition of Master is very strategic as it gives us an industry-leading platform from which to grow in the attractive Florida market, further demonstrating our commitment to expanding our business," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "MCR's business model and customer base are similar to Boyd's, which should result in a smooth integration with our existing business. Further, we assess that there is a tremendous opportunity for accretive add-on growth in Florida, building from the foundation and base of MCR. The acquisition of Master also further solidifies Boyd's leading industry position and enhances our opportunity to capitalize on the trend of U.S. insurance companies consolidating Direct Repair Program volumes and showing increased preference for dealing with large multi-location operators. The Boyd Group, currently the largest multi- location collision repair operator in North America in terms of annual sales and number of locations, continues to look for opportunities to grow its operation. We remain focused on successful execution and integration of acquisitions to increase our profitability and drive value for our unitholders."
The transaction, valued at approximately $11.5 to 12.0 million subject to working capital adjustments, was completed on January 4, 2012. Funding for the transaction was completed 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.
MCR is a leading provider of automotive collision repair services in the Tampa Bay area, a market in west central Florida. With eight operating locations and additional locations under consideration, MCR generated sales of approximately $20 million in the 12 months ended October 31, 2011. The Fund forecasts that MCR will add annual Earnings before Interest, Taxes, Depreciation and Amortization of approximately $2.0 - $2.5 million to its consolidated EBITDA, including synergies. Upon completion of the acquisition, the Boyd Group will operate a total of 175 locations spanning 14 U.S. states and 4 Canadian provinces.
To view the Boyd Group's expected North American coverage after the acquisition of Master, please visit: http://www.boydgroup.com/i/maps/BoydGroupMap2011-Florida.jpg