Collision repair group expands U.S operations

Winnipeg-based The Boyd Group Inc. (TSE: BYD.A) has acquired Atlanta, U.S.-based Car-Tech Holdings Inc. for an undisclosed amount. The deal will require Boyd issuing 264,286 Class-A shares valued at around $1.4 million as part payment for the acquisition.

The Car-Tech deal involves four “high-volume” repair facilities located in metro Atlanta, Georgia. As part of the agreement, Boyd has the option to purchase a fifth facility, also located in the Atlanta area. The four repair facilities bought are expected to generate about $20 million in revenue for the current financial year. The acquisition will boost Boyd’s overall annualized sales to around $133 million, of which approximately 63% of its revenue base will be derived from the U.S. The group now operates 60 company-owned repair shops, and claims to be “the largest operator of collision repair shops in Canada” and one of the largest in the U.S. market. “Strategically, these are attractive acquisitions, which represent a ‘platform’ from which Boyd plans to further expand its presence in the fast growing Atlanta market. The acquisition of Car-Tech provides Boyd with a significant base of business and a proven team that will play a meaningful role in Boyd’s future growth,” the company says in a statement.

Boyd also announced that it has secured a $10 million increase in its credit facility which now stands at $50 million. These monies are to be used for funding acquisitional growth. “This credit facility will be used primarily to finance future acquisitions as the company continues with its proven growth strategy.”