Acquisition Highlights:
Enhances Boyd's Presence in the U.S. Southeast: Joe Hudson's Collision Center ("JHCC") adds 258 collision repair locations to Boyd's platform, establishing a leading position in the growing U.S. Southeast region
Complementary Business Model Expected to Drive Meaningful Synergies: With complementary geographic presence, growth strategies and operational discipline, the acquisition is expected to generate $35-$45 million in annualized run-rate synergies
Established Track Record of Growth and Profitability: JHCC has added 123 locations through acquisitions and 17 locations through new start-ups since the end of 2020 and generated $722 million in sales and 8.7% JHCC Adjusted EBITDA margin for the trailing twelve months ended June 30, 2025 (or 14.4% JHCC Adjusted EBITDA margin with adjustments to JHCC Adjusted EBITDA to approximate IFRS lease accounting treatment for operating lease payments)1
Accretive to Margin and Adjusted Net Earnings per share: The acquisition is expected to be accretive to Boyd's Adjusted EBITDA margin. Additionally, the acquisition is expected to be accretive to Adjusted net earnings per share after synergies in the first full-year, post-close2, as well as double-digit accretive upon full realization of the synergies
Attractive Valuation: The purchase price, net of expected tax benefits, represents a purchase price multiple of 9.3x JHCC Adjusted EBITDA for the trailing twelve months ended June 30, 2025, including run-rate adjustments and synergies3
Prudent Financing Plan: The financing of the acquisition aligns with Boyd's long-standing commitment to strong financial discipline. Boyd has fully committed bridge financing in place and intends to fund the purchase price for the acquisition through a combination of drawings on the Company's revolving credit facilities, proceeds from a concurrently announced equity financing and new senior notes. Boyd expects to return to its current leverage level of 2.7x Net Debt after lease liabilities to Adjusted EBITDA after lease payments potentially as early as the end of 20274
Preliminary Q3 2025 Highlights:
Positive Sales Growth: For the third quarter of 2025, Boyd expects to report sales of between $787 million and $792 million, up approximately 5% year-over-year and driven by same-store sales5 growth in the range of 2%-2.5%, as well as sales from new locations that were not in operation for the full comparative period. Based on claims processing platform data for the third quarter, Boyd estimates that the repairable claims across the collision repair industry were down in the range of 3-5%, an improvement over prior quarter
Strong Adjusted EBITDA Growth: Boyd expects to report an increase of 21-23% in Adjusted EBITDA compared to the third quarter of 2024 and 12.3-12.5% in Adjusted EBITDA margin compared to 10.7% in the third quarter of 20246
Robust New Location Growth: During the third quarter, Boyd added 24 location repair shops, including 17 through acquisition and seven start-ups. At the end of the quarter, Boyd had 1,015 locations
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1
JHCC Adjusted EBITDA and JHCC Adjusted EBITDA margin are non-GAAP measures of JHCC. See "Non-GAAP Financial Measures and Ratios".
2
Adjusted EBITDA, Adjusted EBITDA margin and adjusted net earnings per share are non-GAAP financial measures of Boyd. See "Non-GAAP Financial Measures and Ratios".
3
Assumes run-rate and synergies adjustments to JHCC Adjusted EBITDA. See "Non-GAAP Financial Measures and Ratios".
4
Net Debt before lease liabilities to Adjusted EBITDA adjusted for lease payments is a non-GAAP ratio of Boyd. See "Non-GAAP Financial Measures and Ratios".
5
Same store sales is a non-GAAP financial measure of Boyd. See "Non-GAAP Financial Measures and Ratios".
6
See "Non-GAAP Financial Measures and Ratios"
WINNIPEG, MB, Oct. 29, 2025 /CNW/ - Boyd Group Services Inc. (TSX:BYD) ("Boyd" or the "Company") is pleased to announce that it has entered into a definitive agreement to acquire Joe Hudson's Collision Center from TSG Consumer Partners LP ("TSG"), expanding the Company's footprint by 258 collision locations across the U.S. Southeast and bringing its total locations to 1,273. In addition, the Company is also announcing its preliminary third quarter 2025 financial results, including positive sales growth and an increase of 21-23% in Adjusted EBITDA compared to the third quarter of 2024.
All dollar amounts in this press release are stated in U.S. dollars.
JHCC was founded in 1989 and has executed a successful long-term growth strategy of new location and same-store sales growth. Since its founding, JHCC has successfully grown its footprint to 258 collision locations across 18 U.S. states through a combination of new development and acquisitions. In addition to its strong top-line growth, JHCC's focus on densifying within the U.S. Southeast, as well as executing solid operational performance, has enabled it to establish a track record of strong profitability. For the trailing twelve months ended June 30, 2025, JHCC generated $722 million in sales, $63 million in JHCC Adjusted EBITDA and 8.7% JHCC Adjusted EBITDA margin. With adjustments to JHCC Adjusted EBITDA to approximate IFRS lease accounting treatment for operating lease payments JHCC Adjusted EBITDA was $104 million and JHCC Adjusted EBITDA margin was 14.4%.
"Today's announcement marks a significant milestone for Boyd, as we accelerate our growth and solidify our position as one of the leading players in the highly fragmented North American collision industry," said Mr. Brian Kaner, President and CEO of Boyd. "Through the acquisition of JHCC, we are expanding our presence in the growing region of the U.S. Southeast, which was identified through our enhanced go-to-market strategy as a key growth region for Boyd. In addition to the geographic presence, which is complementary to our existing location footprint, JHCC's growth strategy, operational focus and culture are well aligned with Boyd's, providing us with confidence in our ability to generate meaningful synergies as well as create strong value for our customers, insurance company clients and shareholders as a result of the acquisition," added Mr. Kaner.
"This acquisition comes at an exciting time for Boyd, as we continue to make progress on Project 360 as well as other internal initiatives, which have enabled Boyd to expect to report strong results in the third quarter ended September 30, 2025, as compared to the third quarter of 2024. I want to thank the entire Boyd team for all their hard work and dedication enabling us to achieve strong results in the third quarter and look forward to welcoming the JHCC employees to our Company upon closing of the acquisition," concluded Mr. Kaner.
The purchase price of $1.3 billion represents a purchase price multiple, net of expected tax benefits of approximately $150 million, of 13.3x JHCC Adjusted EBITDA assuming run-rate adjustments for the trailing twelve months ended June 30, 2025.7 After giving full effect to Boyd's expected run-rate annual synergies, the acquisition is valued at approximately 9.3x JHCC Adjusted EBITDA for the trailing twelve months ended June 30, 2025.8 Boyd has fully committed bridge financing in place and intends to finance the acquisition through a combination of drawings on its revolving credit facilities, proceeds from a concurrently announced equity financing and new senior notes.
Given the complementary nature of Boyd and JHCC's businesses and improved density in several regions, Boyd expects to realize run-rate annualized synergies from the acquisition of approximately
