Boyd Group Income Fund has announced that it has signed a definitive agreement and concurrently closed the acquisition of Dora Holdings, Inc., which owns and operates 25 collision repair centers in Illinois, Indiana and Florida under the trade name "Collision Revision". The acquisition is expected to be immediately accretive to the Fund's earnings, and cash flow. Collision Revision generated sales of approximately US$50 million for the trailing twelve months ended December 31, 2013.
"We are very pleased to announce another multi-shop acquisition to further our geographic footprint," said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. "In addition to being immediately accretive to earnings, adding the Collision Revision locations gives Boyd a commanding presence in the greater Chicagoland market. This is our seventh major multi-shop acquisition since 2010 and reinforces our position as the largest multi-shop operator in North America, in terms of number of locations. This has strategic value for Boyd relative to trends within the collision repair industry that have seen insurance companies consolidating direct repair program volumes with fewer providers."
Of the 25 purchased locations, 15 are in the Chicago media market, including one in northwest Indiana. Collision Revision also has eight locations in the state of Illinois south of the Chicago market, including shops in the cities of Peoria, Bloomington and Springfield. The two other purchased locations are in Ft. Wayne, Indiana and Ft. Myers, Florida. With the acquisition of the 25 Collision Revision locations, Boyd will operate 288 collision repair locations across 15 U.S. states and five Canadian provinces.
The total purchase price consideration of approximately of $32.5 million, subject to working capital adjustments, will be funded through a combination of seller financing and use of Boyd's revolving credit facility.