Boyd Group continues U.S. expansion
Boyd Group Inc (The) BYD.A
Shares issued 6,109,994 Oct 1 close $2.20
Mon 4 Oct 99 News Release
Mr. Terry Smith reports
Boyd Group, operating principally as Boyd Autobody & Glass, through a
wholly owned subsidiary, has purchased the assets and business of B&H Body
Shops, Inc., a high-volume collision repair centre just east of Seattle in
Bellevue, Wash.
B&H is a significant acquisition for Boyd in that it represents a
profitable beachhead in the Pacific Northwest of the United States, an area
which enjoys the additional benefit of being in close proximity to Boyd's
18 locations in neighbouring British Columbia. B&H lies within King County,
which continues to experience considerable economic growth because of its
technology-powered economy. King County is home to numerous leading
software companies, including Microsoft Corporation.
B&H's annual revenues are projected to reach $4-million for the current
year. When combined with existing operations, this acquisition will
increase Boyd's overall annualized gross revenue to approximately
$66-million, of which approximately 25 per cent will be derived from U.S.
operations.
The undisclosed purchase price for this acquisition has been satisfied in
part by the issuance of 60,000 Class A shares of Boyd (representing
approximately $202,250 (Canadian) of the purchase price).
With the addition of B&H, the Boyd Group Inc. will now operate 43 company
owned locations. It 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 13 third party owned licensed
locations operating under its tradenames. Boyd continues to successfully
carry out its proven strategy of acquiring 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 be approximately $40-billion (Cdn.) in annual revenue. |
