XPEL, Inc., a global provider of protective films and coatings, has announced the acquisition of five businesses in the United States and Canada from two sellers.
Shadow Shield: A distributor of paint protection film (PPF) and window film to customers in Canada with locations in Calgary, Alberta and Mississauga, Ontario.
Shadow Tint: An installer of paint protection and window film operating in Calgary, Alberta.
North 1 Technologies: A software company providing software and patterns for cutting paint protection film to customers around the world under the FilmWraps brand.
In the United States:
One Armor: An installer of paint protection and window film in Phoenix, Ariz.
Tint Net: A high-volume installer of automotive window film providing on-site service serving mostly mid-range new car dealerships in Arizona.
The combined purchase price of these acquisitions is approximately $20.1 million (USD) and is subject to customary adjustments, including working capital adjustments. These acquisitions closed on October 1, 2021.
On a full year basis, these combined acquisitions would add revenue of approximately $17.0 million. After integration, the company expects full-year post-synergy earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $4 million which the company expects to occur on a run-rate basis beginning in Q2 2022. The company also expects to incur approximately $0.3 million in acquisition and integration related expenses and is funding the transaction with existing cash on hand and available credit facilities.
“XPEL remains a willing buyer of businesses that expand upon our core strategies, from sellers that are looking for their next journey with a winning and dynamic team,” says Ryan Pape, president and CEO of XPEL. “These acquisitions are consistent with our go-to-market strategy and our desire to add top talent to the team.”