EnviroStar, Inc. to Acquire Laundry Distribution and Service Business
September 19 2018 - 9:00AM
Business Wire
EnviroStar, Inc. (NYSE American: EVI) announced today that it
executed a definitive merger agreement to acquire all of the
outstanding shares of a prominent distributor of laundry products
and a provider of installation and maintenance services to the new
and replacement markets of the vended and commercial laundry
industry based in the western United States (the “Business”), using
a combination of cash and EVI stock.
The addition of the Business, which serves over 2,700 customers
in varying end-market segments, is consistent with EVI’s growth
strategy to build the industry’s largest distributor of industrial,
commercial, and vended laundry products, supported by a robust
service organization capable of delivering consistent and
unparalleled world-class services to all of its customers. EVI
expects that the Business will continue to operate as it has
historically, under its existing leadership, using the same name,
executing with the same people, and with the support and resources
of EVI and all of its existing and future business units.
Henry M. Nahmad, EVI’s Chairman and Chief Executive Officer,
commented, “EVI is a growing group of successful entrepreneurs with
a relentless passion and commitment to growth. Our operating
philosophy preserves the entrepreneurial spirit of acquired
businesses and creates a culture that encourages the pursuit of
long-term growth opportunities. This acquisition adds more
revenues, profits, and market share to our fast-growing business,
but more importantly adds another successful entrepreneur and a
team from which we expect significant growth in the future.”
The transaction is expected to close upon the satisfaction of
customary closing conditions and EVI expects the addition of the
Business to be accretive to its fiscal year ended June 30,
2019.
About EnviroStar
EnviroStar, Inc., through its wholly-owned subsidiaries, is a
distributor that sells, leases, and rents commercial, industrial,
and vended laundry and dry cleaning equipment and steam and hot
water boilers manufactured by others, supplies related replacement
parts and accessories, designs and plans turn-key laundry, dry
cleaning, and boiler systems, and provides installation and
maintenance services to thousands of customers, which include
commercial, industrial, institutional, government, and retail
customers. These activities are conducted in the United States,
Canada, the Caribbean and Latin America.
Forward-Looking Statements
Except for the historical matters contained herein, statements
in this press release are forward- looking and are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are subject to a
number of known and unknown risks and uncertainties that may cause
actual results, trends, performance or achievements of EnviroStar,
or industry trends and results, to differ from the future results,
trends, performance or achievements expressed or implied by such
forward-looking statements. These risks and uncertainties include,
among others, that the proposed merger may not be accretive to
EnviroStar’s earnings or otherwise have a positive impact on
EnviroStar’s operating results or financial condition to the extent
anticipated or at all, integration risks, risks related to the
business, operations and prospects of the proposed target and
EnviroStar’s plans with respect thereto, the risk that the
conditions to closing the proposed merger may not be satisfied and
that the proposed merger may not otherwise be consummated when
expected, in accordance with the contemplated terms, or at all, and
the risks related to EnviroStar’s operations, results, financial
condition, financial resources, and growth strategy, including
EnviroStar’s ability to find and complete other merger or
acquisition opportunities, and the impact of any such mergers or
acquisitions on EnviroStar’s operations, results and financial
condition. Reference is also made to other economic, competitive,
governmental, technological and other risks and factors discussed
in EnviroStar’s filings with the Securities and Exchange
Commission, including, without limitation, those disclosed in the
“Risk Factors” section of EnviroStar’s Annual Report on Form 10-K
for the fiscal year ended June 30, 2018 filed with the SEC on
September 13, 2018. Many of these risks and factors are beyond
EnviroStar’s control. In addition, past performance and perceived
trends may not be indicative of future results. EnviroStar cautions
that the foregoing factors are not exclusive. The reader should not
place undue reliance on any forward-looking statement, which speaks
only as of the date made. EnviroStar does not undertake to, and
specifically disclaims any obligation to, update or supplement any
forward-looking statement, whether as a result of changes in
circumstances, new information, subsequent events or otherwise,
except as may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20180919005361/en/
EnviroStar, Inc.Henry M. Nahmad, 305-754-8676orMichael Steiner,
305-754-8676
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