Boyd Group Services Inc. to Acquire Joe Hudson's Collision Center, A Leading Player in the U.S. Southeast Collision Repair Industry

Executive Summary

• Boyd Group Services Inc. entered a definitive agreement to acquire Joe Hudson’s Collision Center (JHCC) for $1.3 billion, adding 258 collision‑repair locations and bringing total sites to 1,273.
• The acquisition is expected to generate $35‑$45 million of annual run‑rate synergies and be accretive to adjusted EBITDA margin and net earnings per share in the first full year post‑close.
• Boyd announced preliminary Q3 2025 results forecasting sales of $787‑$792 million (≈5% YoY growth) and Adjusted EBITDA up 21‑23% versus Q3 2024, with a 12.3‑12.5% margin.

Key Details

• Purchase Price: $1.3 billion (net of ~US$150 million tax benefits), representing a multiple of 13.3× JHCC Adjusted EBITDA (pre‑synergy) and ≈9.3× after expected run‑rate synergies.
• Financing Plan: Combination of revolver drawdowns, proceeds from a concurrently announced equity offering, and new senior notes; bridge financing fully committed.
• Synergy Outlook: $35‑$45 million annualized run‑rate synergies (procurement savings, operational efficiencies, densification); ~50% expected in near term, full target by 2028.
• Leverage Impact: Anticipated reduction of Net Debt/Adjusted EBITDA from 3.4× to ≈2.7× as early as end‑2027 post‑close.
• Closing Timeline: Expected Q4 2025, subject to customary conditions and regulatory approvals.
• Preliminary Q3 2025 Guidance:
• Sales: $787‑$792 million (+≈5% YoY).
• Same‑store sales growth: 2.0‑2.5%.
• Adjusted EBITDA increase: 21‑23% vs. Q3 2024.
• Adjusted EBITDA margin: 12.3‑12.5% (up from 10.7%).
• New locations added in quarter: 24 (17 acquisitions, 7 start‑ups).
• JHCC Historical Performance (TTM ended June 30 2025):
• Sales: $722 million.
• Adjusted EBITDA: $63 million (8.7% margin) – adjusted to $104 million (14.4% margin) after lease‑accounting adjustments.
• Strategic Rationale: Enhances Boyd’s footprint in the high‑growth U.S. Southeast, creates density for cost efficiencies, and aligns with Boyd’s 5‑year growth plan.

Notable Quotes

“Today’s announcement marks a significant milestone for Boyd… expanding our presence in the growing region of the U.S. Southeast… providing us with confidence to generate meaningful synergies and create strong value for our customers, insurance partners and shareholders.” – Brian Kaner, President & CEO, Boyd

“This acquisition comes at an exciting time for Boyd as we continue to make progress on Project 360 and other internal initiatives, positioning us to report strong Q3 results.” – Brian Kaner