Boyd Group Acquires Autocrafters in Florida
December 3, 2012

by Casey Neeley, cneeley@glass.com

Manitoba, Canada-based Boyd Group Income Fund announced today its completed acquisition of Ellis Hopkins Inc., Timron Holdings Inc. and S&L Autoglass Inc., which operate under the trade names Autocrafters Collision Repair, Walker Collision Repair and S&L Auto Glass (Autocrafters). The Boyd Group, which owns Gerber Collision and Glass, originally announced the deal last week.

Dan Dott, vice president and chief financial officer of the Boyd Group was able to confirm to glassBYTEs.com™/AGRR™ magazine that the agreement is a full company acquisition.

"In addition to the shares, [the companies acquired] have a number of locations, all of which are leased, so we've inherited the lease," Dott says.

Dott also adds, "We will brand those locations as our Gerber brand—it won't happen immediately, but it will happen over time."

Together, these acquisitions own and operate a total 14 collision repair centers and glass repair and replacement businesses in northern Florida. The companies provide services in the Jacksonville, Fla. area.

The Autocrafters acquisition effectively adds all 14 new locations to the Boyd Group's North American total, bringing the complete number of locations to 220 across 14 U.S. states and four Canadian provinces.

"We are very pleased to complete the acquisition of Autocrafters, further expanding our presence in the Florida market," says Brock Bulbuck, president and CEO of the Boyd Group. "We have built a strong presence in Florida where, upon completion of the Autocrafters acquisition, we will have 37 locations. With strong similarities in their business model, we believe Autocrafters will be a good fit with our existing operations and a strong complement to our position in the market."

In the original announcement made November 29, Bulbuck states, "This will be our fourth multi-location acquisition this year and the third in Florida This transaction demonstrates our commitment to our stated growth strategy and to solidifying our industry-leading position while continuing to look for attractive growth opportunities."

The Boyd Group projects high earnings from the acquisition based on the companies' generated sales of $32.6 million USD for the fiscal year ending December 31, 2011 with total earnings of an estimated $4 million USD. The Boyd Group will not acquire any of the land or buildings for these companies and will therefore incur rent as a cost estimated as $0.6 million USD annually. The Boyd Group plans to fund the $19.5 million through cash, bank debt, convertible debt and third-party financing.

In a deal finalized November 16, the Boyd Group acquired 11 other Florida locations under the trade name The Recovery Room. The 11 Recovery Room 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.

This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
Subscribe to receive the free e-newsletter.