The Boyd Group, parent company to Glass America, Gerber Collision & Glass and others, has signed a definitive agreement and concurrently closed the acquisition of Champ’s Holding Co. Champ’s owns and operates seven collision repair centers in Southeast Louisiana.
The acquisition is expected to be immediately accretive to the Boyd Group Income Fund earnings and cash flow, according to officials. Champ’s was founded in 1978 and generated sales of approximately $37 million USD for the trailing twelve months ending June 2014.
The total purchase price consideration of approximately $35.0 million USD, subject to post-closing adjustments, will be funded through a combination of seller financing and use of Boyd’s revolving credit facility. This purchase price reflects a valuation multiple that is within the range of other recent multi-location acquisitions completed by Boyd, according to officials.
“We are very pleased to enter the Louisiana market which will expand our reach to new customers, increase our geographical footprint for our insurance industry partners and also provide us with another new market from which to execute our single location growth strategy,” says Brock Bulbuck, president and CEO of the Boyd Group.
“Our team is proud of the business we have built over the last 36 years,” says Danny Kingston, Champ’s president “Champ’s decades of growth and success in the collision business are a direct result of the efforts of our knowledgeable, friendly and professional team. We are excited to build on our accomplishments as part of the Boyd team.”