July 4, 2011
Boyd Group Income Fund Completes Acquisition of Cars Collision in the U.S.
- Boyd Group strengthens market leadership with 28 new locations in three states -
Not for distribution to U.S. newswire services or for dissemination in the United States
Winnipeg, Manitoba - July 4, 2011 - Boyd Group Income Fund (TSX: BYD.UN) (“the Fund” or “the Boyd Group”) today announced the closing of the acquisition of Cars Collision Center of Colorado, LLC and Cars Collision Center, LLC (together, “Cars”), which was previously announced on June 20, 2011. The total consideration for the transaction of approximately US$21 million, subject to normal post-closing adjustments, was funded with a combination of cash, U.S. bank debt, third-party financing, and a seller take-back note. No new equity was issued related to the transaction. The acquisition is expected to be immediately accretive to the Fund’s earnings, cash flows, and distributable cash per unit.
“We are very pleased to have completed the acquisition of Cars,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “The acquisition is another major strategic move for us in expanding our footprint and executing our growth plan. We believe that Cars will be an excellent strategic fit with Boyd Group’s existing organization and will further enhance Boyd’s competitive position in the United States.”
The Cars acquisition adds 14 new locations in Illinois, eight in northern Indiana, and six in Colorado. It substantially expands the Boyd Group’s presence in the Chicagoland market to a total of 45 locations, an increase from 23 previously. The acquisition adds Indiana and Colorado to the Boyd Group’s North American footprint. With the acquisition, the Fund now has a total of 164 repair centers in North America, consisting of 127 centers in 13 U.S. states and 37 centers in the four Western Canadian provinces.
About The Boyd Group Inc.
The Boyd Group Inc. is the largest operator of collision repair centres in North America. The Company operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass, as well as in 13 U.S. states under the trade names Gerber Collision & Glass, True2Form, and Cars Collision. The Company also operates Gerber National Glass Services, an auto glass repair and replacement referral business with approximately 3,000 affiliated service providers throughout the United States. For more information on The Boyd Group Inc. or Boyd Group Income Fund, please visit our website at www.boydgroup.com.
About The Boyd Group Income Fund
The Boyd Group Income Fund is an unincorporated, open-ended mutual fund trust created for the purposes of acquiring and holding certain investments, including a majority interest in The Boyd Group Inc. and its subsidiaries. The Boyd Group Income Fund units trade on the Toronto Stock Exchange (TSX) under the symbol BYD.UN.
For further information, please contact:
President & CEO
Tel: (204) 895-1244
Tel: (416) 815-0700 / 1-800-385-5451 (ext. 242)
VP & CFO
Tel: (204) 895-1244
Caution concerning forward-looking statements
Statements made in this press release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like “may”, “will”, “anticipate”, “estimate”, “expect”, “intend”, or “continue” or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: the economic downturn; loss of key customers; fluctuations in cash distributions; dependence on the Fund’s operating subsidiary to pay its interest obligations; loss of services of key senior management personnel; damage to the Company’s brand; variation in the number of insurance claims; margin pressure; management of credit and refinancing risks; responding to changes in the market environment; technology risks; the management of key supplier relationships; capital expenditures; competition from established competitors and new entrants in the businesses in which the Company operates; employee relations; the ability to complete acquisitions of collision repair facilities and other businesses and to integrate these acquisitions successfully; the ability to identify start-up locations and reach anticipated profitability levels; potential discovery of undisclosed liabilities associated with acquisitions; energy costs; weather conditions; operational and infrastructure risks including possible equipment failure and performance of information technology systems; fluctuations in operating results and seasonality; ability to expand into the United States; insurance coverage of sufficient scope to satisfy any liability claims; environmental risk; interest rate fluctuations and general economic conditions; quality of corporate governance; pending and proposed legislative or regulatory developments including the impact of changes in laws, regulations and the enforcement thereof; quality of internal control systems; fluctuations in foreign currencies; fluctuations in the cost of benefit plans; impact of government owned insurance; and the possible impacts from public health emergencies, international conflicts and other developments including those relating to terrorism; and the Fund’s success in anticipating and managing the foregoing risks.
We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the “Risk Factors” section of the Fund’s Annual Information Form, the “Risks and Uncertainties” and other sections of our Management’s Discussion and Analysis of Operating Results and Financial Position and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings.