Business
Boyd Group Income Fund to acquire Canada's largest non-franchise collision repair company with 68 locations
Boyd Group Income Fund to acquire Canada's largest non-franchise collision repair company ...
About this update from Boyd Group Services Inc
[{"type":"text","content":"\n\n\n\nBoyd Group Income Fund to acquire Canada's largest non-franchise collision repair company with 68 locations\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nWINNIPEG, May 29, 2017\n\n\n\n- Strengthens Boyd Group's leadership position in Canada with a new platform in Ontario to better position Boyd for additional growth -\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./\n\n\n\nWINNIPEG, May 29, 2017 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) (\"the Fund\" or \"the Boyd Group\") today announced that it has, through a subsidiary company, entered into a definitive agreement to acquire the assets and business of Assured Automotive Inc. and related entities (\"Assured\"). Assured is the largest operator of non-franchised collision repair centres in Canada, based in Ontario. The acquisition is expected to be immediately accretive to earnings per unit and cash flow per unit.\n\nTransaction Highlights:\n\n\nMarket Leading Scale – further establishes Boyd as a market-leading collision repair provider in North America with 474 locations, over 7,300 employees and over $1.5 billion in 2016 pro forma revenue.\nNew Ontario Platform – adds market-leading presence in Canada's largest collision repair market with 68 locations, more than doubling Boyd's current Canadian footprint.\nTrack Record of Growth – adds a proven management team to Boyd's senior management, with a track record of delivering a five-year revenue CAGR of 24.7% through a combination of strong organic same-store sales growth and M & A growth.\nImmediately Accretive – expected to be immediately accretive to earnings per unit and cash flow per unit.\nAdditional Tax Benefits – tax efficient acquisition structure creating net present value of future tax benefits of $25.5 million.\nAttractive Platform Valuation – net of tax benefits, represents a purchase valuation multiple of 8.3 times adjusted EBITDA for the trailing 12 months ended March 31, 2017, normalized for non-recurr...