Boyd Group Income Fund announced that its wholly owned subsidiary, The Boyd Group, a subsidiary of Body Group Income Fund, signed a definitive agreement and concurrently closed the acquisition — on June 2 — to acquire Collex Collision Experts, which owns and operates 16 collision repair centers in Michigan and Florida.
The acquisition is expected to be immediately accretive to the Fund's earnings and cash flow. Collex generated sales of $46 million for the 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.
"We couldn't be happier. This is a big win for all the team members at Collex Collision Experts, along with our customers," sald Nick Booras, VP of Sales & Marketing for Collex Collision Experts. "You will continue to see the same friendly local faces that you always have."
"Paramount in this deal was the fact that the values of The Boyd Group matched those of Collex Collision Experts. Making sure all of our customers are driving safe reliable vehicles has been priority one for both organizations and will continue to be," he continued.
The implications of this acquisition are significant, says David Roberts, managing director with FOCUS Investment Banking LLC. "In the past, Boyd's has tended to approach acquisitions with more modest offers and pricing. However, when they bought Collision Revision two months ago, they paid up for a platform adjacent to their strongest market. With the Collex acquisition, they have raised the bar again, not only for themselves, but for the other consolidators as well. Essentially they have paid 1x sales and likely, 7-8x EBITDA for Collex. At roughly $3 million per shop, Boyd's has spent more on this acquisition than any previous acquisition on both a gross basis and on a per shop basis. The Collision Revision transaction of $25 million overall was only $1.3 million per shop."
"This is good news for MSOs who are sellers, not so good news for buyers who are competing with Boyd's," he concluded.
From humble beginnings in 1990, The Boyd Group has grown to become the largest operator of non-franchised collision repair centers in North America. They operate as Boyd Autobody & Glass in Canada, and as Gerber Collision & Glass in the United States.
"You don't get to be No. 1 in North America without providing excellent service and putting the customer first," said Booras. "We're proud to now be part of that same team."
Collex Collision Experts has built its company to become the premier auto body repair shop in Michigan and Florida. With this announcement, they join a company that has a long tradition to wow every customer and be the best at their trade.
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.
About Collex Collision Experts
Collex Collision Experts has been an industry leading body shop serving Michigan and Florida since 1975. With their proven 10 step quality process and incredible attention to detail, they have become ASE Certified and ICAR Gold Class Professionals, making them an industry leader in the markets they serve. With their AUTOWATCH software, as well as their eEstimate program, you can get an estimate and watch your car through the process of being fixed, right online. Collex is always giving back to the communities it serves through it's car donation program, Wheels of Hope, as well as countless community partners.
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