Boyd acquires Joe Hudson’s, increasing shop count by 258

TSG Consumer (TSG), a private equity firm specializing in consumer brands, has signed a definitive agreement to sell its majority stake in Joe Hudson’s Collision Center (JHCC) to Boyd Group Services for $1.3 billion, adding 258 locations, expanding Boyd’s shops into two new states.

The transaction is expected to close in Q4, subject to customary closing conditions and regulatory requirements, according to a TSG press release.

“Our co-founders, Traweek Dickson and Joe Hudson, built a legacy of high-quality repairs, amazing associate engagement, and best-in-class customer service through three decades of leadership that continues to define JHCC,” said Brant Wilson, JHCC CEO, in the release. “We were proud to build on that foundation with TSG’s support and look forward to our next chapter with Boyd. We are excited by the opportunity to deliver even greater value to our customers and communities within this competitive industry.”

The release adds that since TSG’s investment in 2019, JHCC has more than doubled its footprint to 258 locations across 18 states, expanding its presence primarily in the Southeastern U.S. and becoming one of the fastest-growing collision repair operators in the country.

A press release from Boyd states that the acquisition will enhance the company’s presence in the U.S. Southeast, bringing its total to 1,253 and “establishing a leading position in the growing U.S. Southeast region.”

“Since our founding in 1990, we have grown our locations through a combination of single-shop and large multi-shop operator acquisitions, as well as the opening of new startup locations,” Kaner said in an investor call on Wednesday. “What we have grown to learn since starting our discussions with Joe Hudson’s is that it has adopted a very similar growth strategy to Boyd in terms of new location growth. Since the end of 2020, Joe Hudson’s has acquired 123 locations and opened 17 new startup locations. In addition, the company has more than doubled its location count since 2020.”

The release states that the acquisition is expected to:

• • “Generate $35 million to $45 million in annualized run-rate synergies; and
  • “Be accretive to Boyd’s Adjusted EBITDA margin and adjusted net earnings per share after synergies in the first full-year, post-close, as well as double-digit accretive upon full realization of the synergies.

It also 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,” the release says. “Boyd expects to return to its current leverage level of 2.7-times net debt after lease liabilities to adjusted EBITDA after lease payments, potentially as early as the end of 2027.”

Boyd notes that JHCC has established a “track record of growth and profitability” by adding 123 locations through acquisitions and 17 locations through new startups since the end of 2020, generating $722 million in sales and 8.7% adjusted EBITDA margin for fiscal year 2024-25.

The purchase price, net of expected tax benefits, represents a purchase price multiple of 9.3 times JHCC’s adjusted EBITDA for fiscal year 2024-25, including run-rate adjustments and synergies, according to Boyd.

The acquisition increases Boyd’s collision center count by 25%, bringing its total number of locations to 1,273. Kaner noted that JHCC has locations in 18 states and has concentrated its growth in the Southeast region. Eighty-five percent of its locations are in 10 states, including the larger states of Texas, Florida, Alabama, and South Carolina, he said.

“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 Brian Kaner, Boyd’s president and CEO, in the release. “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.”

He added that the acquisition comes at an exciting time for the company as it continues to progress with Project 360 and the internalization of scanning and calibrations. Kaner previously said Project 360 is meant to drive store economics, cost leverage, and customer satisfaction.  All of which contributed to strong Q3 results compared to Q3 2024. Boyd will hold a Q3 earnings call on Nov. 12.

“With a strong foundation in place, alongside an improvement in industry conditions, it is an opportune time for Boyd to accelerate its growth,” Kaner said in the investor call.

“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,” Kaner said in the release.

The purchase price of $1.3 billion represents a purchase price multiple, net of expected tax benefits of approximately $150 million, of 13.3 times JHCC adjusted EBITDA, assuming run-rate adjustments for the trailing twelve months ended June 30, 2025, according to Boyd.

“From the outset, we recognized JHCC as an exceptional platform for disciplined and strategic growth,” said Pierre LeComte, managing director at TSG Consumer, in the TSG release. “Together with the management team, we successfully navigated unprecedented market conditions (including the COVID-19 pandemic), supported them through succession planning as a founder-led business, and enhanced the company’s operational foundation.”

Erik Johnson, TSG Consumer managing director, added, “Our partnership with JHCC exemplifies our hands-on approach to scaling businesses. By leveraging our automotive industry expertise and working closely with the JHCC leadership team, we supported the company’s growth — both organically and via acquisitions — to expand its footprint, enhance its service quality, and streamline the repair experience. These initiatives not only strengthened JHCC’s market position but also delivered meaningful impact to the communities the company serves. We are confident JHCC will thrive as part of Boyd and wish them continued success.”

Boyd also announced on Wednesday that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets, CIBC Capital Markets, National Bank Capital Markets, and TD Securities, on a bought deal basis, 5.53 million common shares of BGSI at $141 per share for gross proceeds of $780 million.

The common shares will be offered to the public in Canada and the United States.

Collision consolidation

The total number of shops acquired or opened by consolidators and market-leading MSOs by the first half of the year was 223, down 35% compared to the same period in 2024 (343), according to Focus Advisors.

The decline was concentrated among three of the Big 5 — Caliber, Crash Champions, and Joe Hudson’s — while Gerber was flat year-over-year, and Classic Collision increased openings.

Focus Advisors previously told Repairer Driven News the latest count for Gerber U.S. locations is 875, and that an earlier announcement about opening its 1,000th location included Boyd and Assured, which are in Canada.

When asked about overall shop counts in September, Senior Associate Madeleine Roberts Rich shared with RDN that Focus Advisors estimates there are 30,000 collision shops in the U.S., around 23,000 of which are single shops.

She added that there are 15 consolidators: Caliber, Gerber, Crash Champions, Classic Collision, Joe Hudson’s, Quality Collision, CollisionRight, Kaizen, VIVE, OpenRoad, Puget, BrightPoint, Chilton, Driving Force, and Authentic Auto Body.

Images

Featured image provided by Joe Hudson’s Collision Center