The industry showed a mixed response to the news over the weekend that Boyd Group Income Fund, parent company to U.S.-based Gerber Collision & Glass, Glass America and others, is acquiring Schaumburg, Ill.-based Netcost Claims Services (NCS), an automotive glass claims administrator for insurance companies. “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.
Speculation over the deal has also emerged on the glassBYTEs.com™/AGRR™ magazine forum.
“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 center to the GNGS network of 3,000 independently-owned auto repair locations in the U.S. 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, according to Boyd’s website.
Stay tuned to glassBYTEs.com™ for more on this deal as it becomes available.