Boyd Group Secures $25 Million in Capital Funding Through Trading Partners
WINNIPEG, July 7 /CNW/ - The Boyd Group Inc. (''Boyd''), operating
principally as Boyd Autobody & Glass, announced today that it has entered into
arrangements with multiple trading partners that, subject to Boyd's continuing
growth, will provide the Company with approximately $25 million in capital
funding over the course of the next three to six years. Subject to certain
obligations and performance criteria, which Boyd anticipates being able to
meet, Boyd will not be required to repay these amounts funded.
This group of trading partners includes Automotive Refinish Technologies
Inc., which is a wholly owned subsidiary of BASF Corporation. BASF, in North
America, had annual revenues of $7.2 billion (U.S.) in 1998.
''These are significant shareholder value enhancing arrangements in that
they provide us with additional capital to grow our business without any
equity dilution or carrying costs to our shareholders.'' said Brock Bulbuck,
Boyd's Senior Vice President and CFO. ''These arrangements will also provide
us with many value added services including assistance with the further
development of e-commerce strategies, innovative repair process strategies and
large customer initiatives.''
The Boyd Group Inc., with 40 company owned locations, is the largest
operator of collision repair shops in Canada and is among the largest in North
America. In addition to its company owned locations, Boyd also has 14 third
party owned licensed locations trading under its tradenames. It is
aggressively acquiring and opening additional company owned locations as part
of its plan to be a leader in the consolidation of the highly fragmented North
American collision repair industry, recently estimated to represent
approximately $40 billion (Cdn.) annually.
The Winnipeg Stock Exchange neither approves nor disapproves of the
adequacy or accuracy of this release.
%SEDAR: 00010084E
-30-
For further information: Terry Smith, President & CEO or Brock Bulbuck,
Senior Vice President and CFO at (204) 895-1244 |
