Boyd Group acquires Baum and Pell
Boyd Group Inc (The) BYD.A
Shares issued 11,990,190 2000-04-17 close $2.65
Tuesday Apr 18 2000
Mr. Terry Smith reports
Through a wholly owned subsidiary, the company has purchased the assets and business of Baum and Pell Company operating as Kingswood Collision Center, a modern, high-volume collision repair facility in Mesa, Ariz. Concurrent with the acquisition of Kingswood, Boyd has also acquired the shares of Mainstreet Collision Center, Inc., which also operates a collision repair facility in Mesa, Ariz., and has entered into an agreement with the principals of Baum and Pell company to acquire a yet to be developed, third repair facility in the Phoenix area.
Strategically these are attractive acquisitions, which provide Boyd with a meaningful entry into the Arizona market. These acquisitions also secure proven management that will play a role in Boyd's further expansion in the state of Arizona.
The total annual revenues for Kingswood and Mainstreet were approximately $9-million for 1999. When combined with existing operations, these two acquisitions are expected to increase Boyd's overall annualized sales to approximately $97-million, of which approximately 50 per cent will be derived from U.S. operations.
The undisclosed purchase price for the acquisition of Kingswood and Mainstreet has been satisfied in part by the issuance of approximately 208,000 Class A shares of Boyd, representing approximately $889,200 of the purchase price.
With the addition of Kingswood and Mainstreet, the Boyd Group Inc. will now operate 52 company-owned locations. It is the largest operator of collision repair shops in Canada, among the largest in North America and represents the only publicly traded collision repair company in North America. In addition to its company owned locations, Boyd also has eight third party owned licensed locations operating under its trade names. 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 in annual revenue. |
