Winnipeg, Manitoba -- June 6, 2014 -- The Boyd Group has signed a definitive agreement for the acquisition of Collex Collision Experts and Collex Collision Experts of Florida, which owns and operate 16 collision repair centres in Michigan and Florida. The acquisition is expected to be immediately accretive to the Fund's earnings and cash flow. Collex generated sales of approximately US$46 million for the trailing twelve months ended January 2014.
"The acquisition of Collex demonstrates our continuing ability to add attractive multi-shop acquisitions as part of our three-pronged growth strategy," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "Collex, along with our previous acquisition of Hansen Collision and Glass, provides us with a leading market position in Michigan and increases our footprint in Florida. This reinforces our position as the largest multi-shop operator in North America in terms of number of locations and further strengthens our ability to serve our U.S. insurance industry clients."
Of the 16 locations purchased, 13 are in southeast Michigan and three are in Southwest Florida. This brings the number of Boyd collision repair locations to 302 across 15 states.
The total purchase price consideration of approximately $45.0 million, subject to post closing adjustments, will be funded through a combination of seller financing and use of Boyd's revolving credit facility. This purchase price reflects a valuation multiple that is within the range of other recent multi-location acquisitions completed by Boyd.