Boyd Group acquires Colorado-based collision repair company

WINNIPEG – Boyd Group Income Fund (TSX:BYD.UN) has entered into a definitive agreement to acquire Cars Collision Center of Colorado LLC, which owns 28 collision repair shops in the U.S. states of Illinois, Indiana, and Colorado.

The pricetag of the deal, announced Monday, is US$21 million.

The Winnipeg-based auto body repair company said the acquisition is expected to immediately boost earnings, cash flows and distributable cash per unit.

“By our estimates, the acquisition will position Boyd as the largest multi-location collision operator in North America not only in terms of number of locations, but also in terms of annual sales,” president and CEO Brock Bulbuck said in a release before stock markets opened Monday.

“After completing this transaction, Boyd will have a total of 164 collision repair centres across 13 U.S. states and four Canadian provinces. We expect to see substantial benefits from the transaction, including expanded critical mass and presence in one of our key markets, an expanded national footprint which translates into enhanced value to our U.S. insurance company clients, as well as additional synergies.”

The transaction is expected to be completed by July 1.

Cars is a private company that operates 14 locations in Illinois, eight in northern Indiana, and six shops in Colorado. It generated sales of US$65 million in the 12 months ended April 30.

The Boyd Group is the largest operator of collision repair centres in North America, operating under the trade names Boyd Autobody & Glass, Gerber Collision & Glass and True2Form.

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