Toronto, Ontario -- The Winnipeg-based Boyd Group Services is going public in the United States, launching a US$780 million ($1.1 billion) initial public offering on the New York Stock Exchange.
The collision repair company will sell 5.53 million common shares at US$141 ($198) each through a syndicate led by RBC Capital Markets, CIBC Capital Markets, National Bank Capital Markets and TD Securities. The stock will begin trading October 31 on the NYSE under the symbol BGSI, while continuing to trade on the Toronto Stock Exchange (TSX) as BYD.
The share sale, one of the largest by a Canadian firm this year, is expected to close around November 4, pending final approvals. The banks involved also have a 30-day option to buy up to 829,800 additional shares, which would raise another US$117 million ($164 million).
“This marks a significant milestone for Boyd, as we accelerate our growth and solidify our position as one of the leading players in the highly fragmented North American collision industry,” said chief executive officer Brian Kaner.
Kaner said the listing “comes at an exciting time for Boyd, as we continue to make progress on Project 360 and other internal initiatives.” The company expects third-quarter sales of about US$787 million ($1.1 billion) to US$792 million ($1.1 billion), up roughly five percent from last year, with adjusted earnings before interest, taxes, depreciation and amortization rising by between 21 percent and 23 percent.
In a press release, company officials said the U.S. IPO will broaden its investor base and provide capital for expansion. Part of the proceeds will help fund the company’s planned acquisition of Joe Hudson’s Collision Center, announced in a separate release Wednesday.
That deal, worth about US$1.3 billion ($1.8 billion), would add 258 repair shops across 18 U.S. states and is expected to increase Boyd’s annual earnings once cost savings are realized.
