XPEL Inc., a supplier of paint protection and window films, has acquired three Protex franchisees, as well as assets from E-Shields Health.
The company, through its Canadian subsidiaries, acquired three Protex franchisees located in Quebec City, Quebec; Laval, Quebec; and Calgary, Alberta, Canada. The Protex franchisees operate in exclusive geographic territories in their respective markets and install paint protection and/or automotive window films. The company acquired the franchisor, Protex Canada, in 2017.
Separately, XPEL announced plans to open a distribution facility in Calgary, Alberta, Canada to better serve its customers in western Canada.
Ryan Pape, president and CEO of XPEL, commented, “With these acquisitions, we have expanded our installation footprint to 10 locations in three countries. We’re happy to support our Protex franchisees who were looking for the next step in the development of their businesses, and we’re pleased to welcome new employees to the XPEL team.”
In addition, XPEL acquired assets from E-Shields Health, a developer of anti-microbial surface protection film sold in a business-to-business setting. The company says it intends to re-brand and commercialize the products as part of its XPEL VISION architectural film business in 2019.
The total purchase price of the four businesses was approximately $1.25 million funded from cash on-hand and through the issuance of unsecured promissory notes to the sellers.
Also this week, the company reported second quarter revenue growth of 69.3 percent to $28.9 million. Revenues for the six months ending June 30, 2018, increased approximately $24.4 million or 82.2 percent to $54.1 million as compared to $29.7 million in the prior year period.
“Building on the momentum of our tremendous first quarter results, XPEL delivered its second consecutive quarter of record revenues, enhanced gross margins and significantly improved profitability,” said Pape. “We are seeing strong demand for our product lines across all of our operating regions with particular strength from our paint protection film line, where we saw revenue growth of 78 percent. Likewise, our China business continues to show robust growth, contributing 32 percent of total revenue in the quarter. We’re pleased to have achieved continued gross margin improvement, directly related to the positive impact of the production efficiencies and margin enhancement initiatives we undertook during the third and fourth quarters of 2017.
“This is an exciting time for our company as we focus on meeting the increasing demand for our products and services and also concentrate on exceeding the expectations of customers worldwide. XPEL brand recognition is growing exponentially and we remain intent on capturing new customers and driving market share growth both domestically and internationally,” added Pape.