The recent announcement that Boyd Group has acquired NCS received a mixed response from the industry. The acquisition will, according to Brock Bulbuck, President and Chief Executive Officer of the Boyd Group, … “considerably strengthen our value proposition.”
Boyd Group Income Fund (has announced that Boyd, through a subsidiary, has signed a definitive agreement and concurrently closed the acquisition of Netcost 866netglass LLC, operating as Netcost Claims Services (NCS). NCS generated sales of approximately USD 25 million in 2013.
NCS expands Boyd Group’s existing third party administration business, Gerber National Glass Services (GNGS), which offers first notice of loss, auto glass and related services through its network of auto glass providers across the US. Third party administrators serve the fleet management and insurance-funded segments of the auto glass repair industry by providing a complete outsourced solution from the time that a claim is made. Both NCS and GNGS then manage the claim to ensure that the necessary repairs are completed in a quality manner and at a competitive price. NCS also offers roadside assistance services and has the additional benefit of owning and operating its own call centre.
“This is a very important development that will enhance our current glass repair business and enable our US auto glass business to grow its relationship with its fleet management and insurance industry customers.” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “The addition of a call centre to the GNGS network of 3,000 independently-owned auto repair locations in the US will considerably strengthen our value proposition.”
The total purchase price consideration of approximately of USD 3.0 million, subject to post closing adjustments, will be funded through a combination of available cash and seller financing.
The industry showed a mixed response to the acquisition. “Seems to me that companies are doing all they can do grab some market share,” says Mark Liston, president of Glass Doctor.
“I applaud aggressive companies! I’m not sure how this will impact the landscape of our industry. Only time will tell,” he adds.
“This means there will be a ‘new round’ of bidding wars with the insurance companies, which could lead to ‘healthy’ competition. It could also lead to ‘unhealthy’ competition … we will see where it goes,” says Kerry Soat, owner of Fas-Break in Chandler, Ariz.
“It looks like two good companies coming together and consolidating to compete with the massive acquisition path Safelite has been on. I suspect that there will be more consolidation in third-party administrator (TPA) space in the future,” says Paul Gross, president and CEO of HSG and CodeBlue.
“I know these people personally [at NCS], although I have not talked to them in about a year. Boy, I did not see this one coming,” writes one poster.
“[T]hey are good people and basically started with nothing,” the poster adds.
“Netcost Claims Services will disappear within 12 months never to be heard of again,” writes another poster.
The purchase of NCS is designed to expand Boyd Group’s existing third party administration business, Gerber National Glass Services (GNGS), Boyd Group officials wrote in a company statement.
“The addition of a call centre to the GNGS network of 3,000 independently-owned auto repair locations in the US will considerably strengthen our value proposition,” says Bulbuck.
GNGS, formerly The Globe Amerada Glass Network, was founded in 1971, according to the company’s website. Officials claim it is “America’s oldest vehicle glass repair and replacement network.”
In 2004, Boyd acquired Gerber Collision & Glass. The company went on to acquire Globe Amerada Glass Network in 2005 under the Gerber name and re-branded it as GNGS.