Boyd Group Services (BGSI) has announced the closing of a US$897 million bought deal public offering of common shares in Canada and the United States, representing the initial public offering in the United States, as part of its acquisition of Joe Hudson’s Collision Center.
BGSI intends to use the net proceeds to partially fund the acquisition of the provider of automotive collision repair services from TSG Consumer Partners LP, expanding the company’s footprint by 258 collision locations across the U.S. southeast and bringing its total locations to 1,273.
The company issued a total of 6.36 million common shares, including 829,800 common shares following the exercise in full by the underwriters of their option to purchase additional common shares, at a price of US$141 per share, for gross proceeds of approximately US$897 million.
With complementary geographic presence, growth strategies and operational discipline, the acquisition is expected to generate $35-$45 million annually for Boyd.
The Boyd Group is one of the largest operators of non-franchised collision repair centres in North America in terms of number of locations and sales, operating locations in Canada under the trade names Boyd Autobody & Glass and Assured Automotive, as well as in the U.S. under the trade name Gerber Collision & Glass.