The transaction, valued at approximately US$4.4 million subject to working capital adjustments, is expected to be completed in July 2012. Funding for the transaction will be through a combination of cash, third- party financing and a seller note. The fund will not be issuing any new equity to fund the transaction and, therefore, the transaction will not result in equity dilution to unitholders.
Pearl generated sales of approximately US$13 million during the last 12 months. The fund forecasts that Pearl will add annual earnings before interest, taxes, depreciation and amortization ("EBITDA") of approximately $1 million to its consolidated EBITDA, including synergies. Upon completion of the acquisition, the Boyd Group will operate 186 locations in 14 U.S. states and four Canadian provinces.
"The acquisition of Pearl strengthens our presence in the Denver market where we will double our number of locations to 12 with this transaction," said Brock Bulbuck, president and chief executive officer of the Boyd Group. "Pearl's business model and customer base are similar to Boyd's, which should lead to a smooth integration with our existing business.
Like the Boyd Group, Pearl recognizes the trend of U.S. insurance companies consolidating direct repair program volumes with fewer providers, and has developed strong relationships with its insurance company clients. We believe that we can leverage this further given the Boyd Group's growing U.S. footprint and existing relationships with other insurance companies that have a strong presence in Colorado. Being the largest multi-location collision repair operator in North America in terms of annual sales and number of locations, the Boyd Group is committed to solidifying its industry-leading position and continues to look for opportunities to grow its operations."
The Boyd Group operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass, as well as in 14 U.S. states under the trade names Gerber Collision & Glass, True2Form, and Master Collision Repair. 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 visit www.boydgroup.com.
