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Monday, 05 January 2015 00:00

Boyd Group Expands in FL by Acquiring Craftmaster Auto Body

The Boyd Group, North America's largest multi-shop operator of collision repair centres in terms of number of locations, has added six new locations in Florida through the acquisition of a full-service auto collision repair service provider in the Melbourne area.

Boyd Group Income Fund announced on January 5 a wholly owned subsidiary of The Boyd Group (U.S.) Inc., acquired the assets of Craftmaster Auto Body Group, Inc. effective January 2. The acquisition is expected to be immediately accretive to the Fund's earnings and cash flow. Craftmaster was established in 1981 and generated sales of approximately $13.6 million for the trailing twelve months ended August 2014.

With the acquisition of the six Craftmaster shops, Boyd's Florida operations have grown to 50 locations, and all will operate under the trade name of Gerber Collision & Glass once Craftmaster has been rebranded. In total, Boyd will operate 323 collision repair locations across 17 states and five provinces.

"This is an exciting opportunity for Boyd, and for all collision repair customers in eastern Florida," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "Because of our scale, we can assure customers of the best possible service and the highest quality of repairs using the latest innovations in processes and technology. We know the people at Craftmaster aspire to those same goals, and we're thrilled to have them join our team."

He added that the transaction reflects Boyd's ongoing commitment to continuing its prudent expansion program, including the acquisition of multi-shop operations that are accretive to the business. "This is our expectation with Craftmaster through its multiple locations and track record of high-quality work." "Our locations are very proud to be joining the Boyd team," said Craftmaster's President Mark Klenck. "This will allow them to better serve customers into the future by being part of a much larger team with locations across much of the country."

The total purchase price consideration of approximately $7.4 million, subject to post closing adjustments, will be funded through a combination of seller financing and cash. This purchase price reflects a valuation multiple that is within the range of other recent multi-location acquisitions completed by Boyd.

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