EVI Industries, Inc. to Acquire PAC Industries, Inc.
January 22 2019 - 9:00AM
Business Wire
EVI Industries, Inc. (NYSE American:EVI) announced today that it
entered into a definitive stock purchase agreement to acquire all
of the outstanding shares of common stock of PAC Industries, Inc.
(“PAC”) for $12.85 million, of which $6.4 million will be paid in
cash, $6.25 million in EVI common stock, and $0.2 million in an
assumed subordinated note. Based in Harrisburg, Pennsylvania, PAC
is a prominent distributor of commercial, industrial, and vended
laundry products and a provider of related installation and
maintenance services to the new and replacement markets of the
laundry industry. For the twelve-months ended December 31, 2018,
PAC generated approximately $22.0 million in revenue from the sale
of equipment, parts, supplies, and related installation and
maintenance services.
As a member of the EVI family, PAC will gain immediate access to
the resources necessary to pursue its planned growth opportunities.
Additionally, consistent with EVI’s operating philosophy, PAC will
operate as a subsidiary of EVI from its present locations, under
its existing leadership, and conduct business as it has
historically. Frank Costabile, President of PAC, commented, “On
behalf of all of the employees and owners of PAC, we are thrilled
to join the EVI family and are anxious to begin working towards
accomplishing our collective long-term goals.”
Since January 1, 2018, EVI has completed seven acquisitions in
the commercial laundry industry. The acquisition of PAC will be
EVI’s first in the northeast region, where EVI expects to
aggressively continue executing its buy and build growth strategy.
Given EVI’s entrepreneurial culture, focus on long-term growth, and
autonomous operating model, it continues to represent the
industry’s most compelling opportunity for owners of longstanding,
high-quality businesses in and around the commercial laundry
industry.
Henry M. Nahmad, EVI’s Chairman and Chief Executive Officer,
commented, “We welcome all of the valued employees and owners of
PAC Industries to the EVI family. Our goal remains to be the best
performing partner to each of our valued suppliers, to offer a
comprehensive suite of products and world-class services to our
customers, and to maintain an entrepreneurial culture that attracts
the most talented entrepreneurs and professionals.”
The transaction is expected to close upon the satisfaction of
all customary closing conditions. EVI expects the addition of PAC
to be accretive to its fiscal year ended June 30, 2019.
About EVI Industries
EVI Industries, 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 EVI
Industries, 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 acquisition
of PAC may not be accretive to EVI Industries earnings or otherwise
have a positive impact on EVI Industries operating results or
financial condition to the extent anticipated or at all,
integration risks, risks related to the business, operations and
prospects of PAC and EVI Industries plans with respect thereto, the
risk that the conditions to closing the proposed acquisition may
not be satisfied and that the proposed acquisition may not
otherwise be consummated when expected, in accordance with the
contemplated terms, or at all, and the risks related to EVI
Industries operations, results, financial condition, financial
resources, and growth strategy, including EVI Industries ability to
find and complete other acquisition opportunities, and the impact
of any such acquisitions on EVI Industries operations, results and
financial condition. Reference is also made to other economic,
competitive, governmental, technological and other risks and
factors discussed in EVI Industries filings with the Securities and
Exchange Commission, including, without limitation, those disclosed
in the “Risk Factors” section of EVI Industries 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 EVI Industries control. In addition, past performance and
perceived trends may not be indicative of future results. EVI
Industries 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. EVI Industries
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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EVI Industries, Inc.Henry M. Nahmad (305) 754-8676Michael
Steiner (305) 754-8676
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