By Jeff Sanford
Boucherville, Quebec -- November 17, 2015 -- Uni-Select has announced that it has completed the acquisition of T.N. Discovery Auto Collision, a jobber operating in the Greater Toronto Area (GTA).
The deal was executed through one of its Canadian subsidiaries, Automotive Canada. The acquisition expands Uni-Select's reach into Ontario, and, more specifically, into the Toronto market. T.N. Discovery has been in operation in the GTA since 1995. A team of eight works out of two locations in Scarborough and North York, Ontario.
"We are pleased to add this great business to our network of corporate stores and to continue to serve Scarborough and North York markets for our paint and body customers," said Gary O'Connor, President and Chief Operating Officer, Automotive Canada.
A statement from Henry Buckley, President and Chief Executive Officer for Uni-Select, notes that the acquisition fits in with Uni-Select's overall strategy.
"This acquisition is an example of our commitment to extend our leadership position in the North American automotive refinish PBE market and we welcome a new player to our Uni-Select family," said Buckley.
The acquisition should not be a surprise. Company executives have made clear recently their intention to grow the company through acquisitions. As reported in Collision Repair magazine, earlier this year the company shed assets to raise cash and pay down debt. A new CEO came in over the summer. A new CFO came onboard just a few months ago. With the team and financing in place, it seems the company is now setting to make good on its promise to grow the publicly traded company through carefully selected acquistions.
Markets seem to approve of the deal. Shares in Uni-Select were up a very strong 6 percent on the day, rising $3.55 to $63.05. Stock in Uni-Select has been on a bit of a tear over the last year. Shares in the company have doubled since January of 2015 when shares were trading at $30. It seems investors like the strategy unfolding at the company.
Uni-Select has over 2,400 employees. The company operates 13 distribution centres across Canada and distributes product from over 200 corporate stores. The company is headquartered in Boucherville, Quebec. Shares trade on the Toronto Stock Exchanges under the symbol UNS.