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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based FinishMaster Inc. announced late Thursday it will be acquired by a unit of Uni-Select Inc.of Canada for $172 million.
The distributor of automotive paints and accessories will retain its identity within the larger firm, serving the collision-repair market. FinishMaster also will keep its existing management team and headquarters downtown.
Uni-Select, which reported North American revenue of $1.3 million last year, distributes automotive replacement parts, equipment, tools and accessories. Its Uni-Select USA Inc. subsidiary is the sixth-largest distributor in the United States.
“By bringing together two companies with complementary product portfolios and common corporate values, this transaction enables us to become the premier ‘one-stop shop’ for body shops in North America,” FinishMaster CEO J.A. Lacy said in a prepared statement.
The Indianapolis company had suffered during the recession and its aftermath from vehicles being driven fewer miles, resulting in fewer accidents and a diminished need for paint for repairs.
Last month, company reported third-quarter profit of $3.5 million, up nearly 16 percent from the same period in 2009. For the nine months ended Sept. 30, profit remained flat, at $9.4 million.
The company said the purchase price was based on an enterprise value of about $217 million, less $45 million in debt and transaction costs. FinishMaster shareholders will receive $21 cash per share—a 32 percent premium to the 30-day average share price of the thinly traded stock.
FinishMaster operates three major distribution centers and 162 branches in 29 of the country’s largest metropolitan areas. It is controlled by LDI Ltd., a closely held Indianapolis firm chaired by Andre Lacy.
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