Automotive aftermarket distribution network Uni-Select Inc. has announced the departure of Henry Buckley, the President and Chief Executive Officer, and has revised its financial guidance.
It also announced the formation of a special committee to review strategic alternatives for the organization.
Buckley has also stepped down as a member of the Board of Directors of the Corporation.
The changes come in the face of updated guidance from Uni-Select.
While FinishMaster’s organic sales growth is trending positively, it is no longer expected to reach the level previously indicated for the full year, says Uni-Select. As a result, FinishMaster’s expected full year 2018 organic sales growth is revised down from 2.0%-4.0% to 0.5%‑2.0%.
The Canadian Automotive Group’s expected full year 2018 organic sales growth is revised down from 0.0%-2.0% to 0.0-1.5%. The Parts Alliance UK’s expected full year 2018 organic sales growth is revised up from 5.0%-7.0% to 6.0%-8.0%.
Consequently, the consolidated organic sales growth guidance is revised down from 2.25%-4.0% to 0.8%-2.6% and the consolidated EBITDA margin is revised down from 7.2%-8.2% to 6.75%-7.25%.
Uni-Select has also announces the formation of a special committee of independent members of the Board of Directors to oversee a review of strategic alternatives. The special committee has a mandate to work with the Board of Directors and Management to identify, review, analyze and evaluate strategic alternatives. J.P. Morgan Securities LLC and Fasken Martineau DuMoulin LLP have been engaged as financial advisor and legal counsel, respectively, to the Board of Directors and the special committee in connection with this process.
Uni-Select has not set a definitive schedule to complete the review of strategic alternatives. Given the nature of the process, the Corporation does not intend to provide updates until such time as the Board of Directors approves a definitive transaction or strategic alternative, or otherwise determines that further disclosure is appropriate. There are no guarantees that the review of strategic alternatives will result in a transaction, or if a transaction is undertaken, as to its terms or timing
André Courville, Chair of the Board, will assume the interim role of President and Chief Executive Officer of the Corporation and therefore has stepped down as Chair and member of all committees but will remain a member of the Board of Directors. As a result, some Board member roles and responsibilities will change: Michelle Cormier has been nominated Chair of the Board and has stepped down from her role as Chair of the Audit Committee. Finally, Richard G. Roy has been nominated as Chair of the Audit Committee.
Uni-Select also announces the appointment of Chris Adams as President and Chief Operating Officer, FinishMaster, Inc., effective immediately, to replace Steven J. Arndt, who is leaving FinishMaster after more than 25 years of service.
Since joining the FinishMaster team recently, Chris has been responsible for all US branches and has led all sales and marketing efforts in the United States. Previously, Chris held senior positions at ABRA Auto Body & Glass LP, a major multi-shop operator in the collision repair industry. Prior to that, he was in senior executive roles at Pep Boys and Enterprise Rent-A-Car.
“We thank Henry for his years of service and loyalty to Uni-Select and wish him well in his future endeavors. In his long career at FinishMaster, Steve has had an undeniable contribution to the success of creating a market leader in the refinish market and we wish him all the best. Finally, we believe Chris is the right leader to drive FinishMaster forward,” commented Mr. Courville.
Chris Adams along with Brent Windom, President and Chief Operating Officer, Canadian Automotive Group, and Peter Sephton, President and Chief Executive Officer, European Automotive Group, will continue to lead the day-to-day operations, reporting to the Interim President and CEO, with the ongoing support of Eric Bussières, Chief Financial Officer.