Winnipeg, Manitoba -- February 3, 2014 -- Boyd Group Income Fund has announced that it has now entered into a letter of intent with its existing paint supplier for a new or amended agreement.
Under the new or amended agreement, Boyd will continue to benefit from a back-end purchase discount structure that was put in place as part of the amendment and restructuring of its paint supply agreement in October, 2013, as Collision Repair magazine reported here.
"We are pleased to have taken the next step towards finalizing a new long-term paint supply arrangement that better reflects our current size, purchasing scale and access to capital, as well as changing paint market conditions," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "Under the new arrangement, we will continue to benefit from the accretive nature of the higher, market-driven, back-end purchase discounts achieved by amending and restructuring our previous arrangement last October. We are also very pleased to be able to continue to work with our incumbent paint supplier, who has been a valued business partner since 2006."
Boyd will work with its paint supplier to finalize a definitive agreement prior to March 31, 2014 and Boyd will continue to benefit from the higher back-end purchase discounts during this interim period. Should Boyd not be able to finalize a definitive agreement with it paint supplier by March 31, it assesses that it would have comparable competitive offerings available to it.