August 3, 2010
Boyd Group Completes Acquisition of True2Form in the U.S
- Expands Market Presence with 37 Centers in Four States -
Not for distribution to U.S. newswire services or for dissemination in the United States.
Winnipeg, Manitoba - August 3, 2010 - Boyd Group Income Fund (TSX: BYD.UN) (“the Fund” or “the Boyd Group”) today announced the closing of the acquisition of True2Form Collision Repair Centers, Inc., which was previously announced on June 28, 2010. The total consideration for the transaction of approximately US$18 million, subject to normal post-closing adjustments, was funded with a combination of cash, U.S. bank debt, third-party financing, and a vendor take-back note. No new equity was issued related to the transaction. The acquisition is expected to be immediately accretive to the Fund’s distributable cash per unit.
“We are very pleased to have completed the acquisition of True2Form,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “The acquisition is a major strategic move for us in expanding our footprint and continuing our growth plan. We believe that True2Form’s strong management team and industry-leading operational expertise and service levels are an excellent fit with Boyd Group’s existing organization and will further enhance Boyd’s competitive position in the United States.”
The True2Form acquisition adds 37 new locations in four U.S. states where the Boyd Group previously had no operations. This significantly expands the Boyd Group’s footprint with a total of 130 repair centers in North America, consisting of 93 centers in 11 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 Canada and among the largest in North America. The Company operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass, as well as in eleven U.S. states under the trade names Gerber Collision & Glass and True2Form. 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
VP & CFO
Tel: (204) 895-1244
Tel: (416) 815-0700 / 1-800-385-5451 (ext. 242)
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.