WINNIPEG - The Boyd Group Income Fund (TSX: BYD.UN) is buying 11 collision repair centres in the Orlando, Fla., area in a deal worth about US$7.3 million.
The assets of the company operating under the trade name The Recovery Room Collision Repair, plus a work-in-progress inventory adjustment, will be paid for through a combination of cash, bank debt and third-party financing.
"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," the Winnipeg-based Boyd Group said Friday.
Boyd Group president and CEO Brock Bulbuck said the acquisition would double the number of his company's locations in Florida.
"We believe Florida is an attractive market for our business and has many growth opportunities," he said, adding that TRR's business model "should lead to a smooth integration with our existing business."
Bulbuck said also he believes that Boyd can add to TRR's existing customer base and that the company is expected to generate annual sales of US$23 million.
The Boyd Group Inc. is the largest operator of collision repair centres in North America, with locations in four provinces in Western Canada and 14 U.S. states under various trade names and an auto glass repair and replacement referral business with approximately 3,000 affiliated service providers throughout the United States.