Boyd Group snaps up Joe Hudson’s Collision Centre chain for US$1.3B

Boyd Group’s latest expansion involves a US$1.3 billion deal and 258 collision centres across the southeastern United States.

The Winnipeg-based corporation said it will buy Joe Hudson’s Collision Centre, a chain that’s added 123 locations over the past five years alone.

Simultaneously, Boyd Group — which houses brands like Boyd Autobody & Glass — is reporting surging profits. It expects its third-quarter sales to range from US$787 million to US$792 million — approximately five per cent higher than the previous year.

Boyd Group circled the U.S. Southeast as a “key growth region” in its go-to-market strategy, the company’s chief executive said in a news release.

“JHCC’s growth strategy, operational focus and culture are well aligned with Boyd’s,” said Brian Kaner.

Joe Hudson’s Collision Centres are dotted throughout 18 states. The brand clocked US$722 million in sales for the 12 months ending June 30.

TSG Consumer Partners holds JHCC’s majority stake; it invested in 2019. Under the San Francisco-based company’s watch, Joe Hudson’s became one of America’s fastest-growing collision repair operators, spokesperson Alex Schaffer said.

“We feel confident that we have provided value during ownership,” Schaffer wrote in a statement. “The agreement with Boyd makes this the right time to exit the business on behalf of our investors.”

Boyd expects the sale will allow for US$35 million to US$45 million in annualized savings or revenue enhancements. Most efficiencies will come from procurement — buying things at a greater scale, said Jeff Murray, Boyd Group Services chief financial officer.

“When there’s more stores that are in a dense area, they tend to perform better,” Murray said. “We’re going to be able to perform better when we’ve got bigger markets.”

The transaction is slated to close by year end.

Boyd hasn’t yet gone through a personnel management plan, Murray said when asked about potential layoffs.

The “vast majority” of locations are single sites with needed staff, he added.

Boyd added 24 repair shops during its third quarter. If its deal with TSG goes through, Boyd will count 1,273 locations.

It’s been on a growth path: in recent years, leadership has aimed to double its 2019 sales by 2025. In 2020, it posted revenues of US$1.5 billion. The metric was US$3 billion by the end of 2024.

A February presentation to investors shows Boyd aims for US$5 billion in revenue by 2029.

Boyd Group started as a single collision repair centre in Winnipeg in 1990. Nine years later, it began opening U.S. locations and touted itself as Canada’s largest collision repair operator.

Boyd will report its finalized third-quarter results on Nov. 12.

gabrielle.piche@winnipegfreepress.com