Boyd Group Acquires 11 Florida Locations
November 20, 2012
The Boyd Group, parent company of Gerber Collision and Glass, has
announced that it has reached an agreement to acquire the assets
of The Recovery Room of Central Florida, Inc. (Recovery) which owns
11 collision repair centers in Orlando, Fla.
"Acquiring [Recovery] is another important strategic undertaking
that will double our number of locations in Florida" says Brock
Bulbuck, president and CEO of the Boyd Group. "Currently, there
is no other major multi-location collision operator in Florida,
and we are the first to build significant presence in the state.
We believe Florida is an attractive market for our business and
has many growth opportunities. Like the Boyd Group, [Recovery]'s
business model provides for a fully integrated service offering
and its customer base consists largely of automobile insurers. These
similarities should lead to a smooth integration with our existing
business. We also believe that we can add to [Recovery]'s customer
base by leveraging our existing relationships with other insurance
companies. As 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 deal, made at $7.3 million USD including a work-in-progress
inventory adjustment, is going to be funded through cash, bank debt
and third-party financing. Boyd does not anticipate issuing new
equity as part of the transaction funding which will prevent equity
dilution for shareholders.
The 11 Recovery locations are expected to operate with annual sales
reaching an estimated $23 million USD. Recovery offers auto glass
replacement services in addition to a variety of auto body replacement
and repair services.
The deal was finalized Friday, November 16.
Bulbuck declined to provide further information about the seller
and several Recovery employees confirmed they were also unable to
offer further information on the deal.
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