In a significant move within the automotive repair sector, Boyd Group Services Inc., one of North America's leading operators of collision repair centers, has agreed to acquire a majority stake in Joe Hudson’s Collision Center (JHCC) from TSG Consumer. This transaction is valued at $1.3 billion and is anticipated to close in the fourth quarter of 2025, pending customary closing conditions and regulatory approvals.
The acquisition marks a pivotal moment for both companies. TSG Consumer, a private equity firm with a focus on consumer brands, has successfully expanded JHCC's footprint during its partnership, growing the number of its locations from a modest base to 258 across 18 states, primarily in the Southeastern U.S. This growth positions JHCC as one of the fastest-growing collision repair operators in the nation.
From a financial perspective, the $1.3 billion deal reflects the increasing value placed on companies in the collision repair industry, which has seen heightened demand for services. The strategic rationale behind this acquisition for Boyd lies in the opportunity to further bolster its market presence and operational capacity, thus enhancing its competitive edge in a rapidly evolving sector.
In terms of next steps, the transaction’s completion is set for late 2025, contingent upon the necessary regulatory and antitrust approvals. Boyd Group has secured financing commitments from RBC Capital Markets, National Bank Capital Markets, and TD Securities, Inc., ensuring a smooth transition and integration process.
The market implications of this acquisition are significant. For shareholders of both companies, the deal represents a growth opportunity, likely leading to increased revenue and market share for Boyd. Employees at JHCC may also benefit from being part of a larger organization with greater resources. For the broader market, this deal underscores the ongoing consolidation trend within the collision repair industry, highlighting the sector's potential resilience and growth.
As the deal progresses, legal representation is being provided by Ropes & Gray LLP for both TSG Consumer and JHCC, while Boyd Group is being advised by RBC Capital Markets and supported by Massumi + Consoli LLP and Axinn, Veltrop & Harkrider LLP. The collaborative efforts of these firms will be crucial in navigating the regulatory landscape to ensure a timely closure of the transaction.