“By bringing together two companies with complementary product portfolios and common corporate values, this transaction enables us to become the premier ‘one-stop shop’ for body shops in North America,” FinishMaster CEO J.A. Lacy said in a prepared statement.
The Indianapolis company had suffered during the recession and its aftermath from vehicles being driven fewer miles, resulting in fewer accidents and a diminished need for paint for repairs.
Last month, company reported third-quarter profit of $3.5 million, up nearly 16 percent from the same period in 2009. For the nine months ended Sept. 30, profit remained flat, at $9.4 million.
The company said the purchase price was based on an enterprise value of about $217 million, less $45 million in debt and transaction costs. FinishMaster shareholders will receive $21 cash per share—a 32 percent premium to the 30-day average share price of the thinly traded stock.
FinishMaster operates three major distribution centers and 162 branches in 29 of the country’s largest metropolitan areas. It is controlled by LDI Ltd., a closely held Indianapolis firm chaired by Andre Lacy.
“We are delighted to be partnered with one of the leading North American automotive replacement parts distributors. By bringing together two companies with complementary product portfolios and common corporate values, this transaction enables us to become the premier “one-stop shop” for body shops in North America. Combining the industry expertise of our two management teams will allow us to further penetrate the market and expand our customer base creating opportunities for FinishMaster associates as well as our suppliers,” said J.A. Lacy, President and CEO of FinishMaster.
“The acquisition of FinishMaster represents a unique opportunity for Uni-Select to expand its scale in the U.S., enter a complementary market as a leader and enhance its product offering,” said Richard Roy, President and CEO of Uni-Select. “This transaction fits in perfectly with our business plan by significantly expanding our presence in the U.S. Although Uni-Select already distributes paint products, this acquisition will immediately improve the quality and breadth of our offering.”
Founded in 1968, FinishMaster is the largest U.S. independent distributor of automotive paints, coatings and related accessories to the automotive collision repair industry. The Company is headquartered in Indianapolis, Indiana, and operates three major distribution centers and 162 branches in 29 of the 50 largest metropolitan areas in the country. For more information on FinishMaster, visit the company’s website at http://www.finishmaster.com/.
Founded in 1968, Uni-SelectTM is a Canadian leader in the distribution of automotive replacement parts, equipment, tools and accessories. Uni-Select USA, Inc., a subsidiary of the Company, provides services to customers in the United States, where it is the sixth largest distributor. The Uni-Select NetworkTM includes over 2,500 independent jobbers and services 3,500 points of sale in North America. Uni-Select is headquartered in Montreal. Uni-Select shares (UNS) are traded on the Toronto Stock Exchange (TSX). Uni-Select and Uni-Select Network are trademarks owned by Uni-Select, Inc. For more information on Uni-Select, visit the company’s website at http://www.uniselect.com/eng/.