EVI Industries to Acquire Laundry Systems of Tennessee and Affiliates
December 16 2019 - 9:00AM
Business Wire
EVI Industries, Inc. (NYSE American: EVI) announced today that
it executed a definitive merger agreement to acquire all of the
outstanding shares of Sevierville, Tennessee based Laundry Systems
of Tennessee and affiliates (the “Company”), a 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 commercial laundry industry. The Company
also leases commercial laundry equipment and sells chemicals and
other laundry consumables to its customers. For over twenty-years,
Laundry Systems of Tennessee has sustained a reputation and
tradition of providing exceptional service while representing
quality products to a diverse customer base. Terms of the
acquisition were not disclosed. Consideration of the purchase
included a combination of cash and EVI common stock.
This acquisition expands EVI’s sales and service presence in the
Southeast U.S., which coincides with EVI’s strategy to build
density in geographic markets to improve customer service and
through which EVI may pursue new growth opportunities. Given EVI’s
operating model and to ensure continuity to the Company’s
customers, employees, and trusted vendor partners, Laundry Systems
of Tennessee will operate under its existing name and under the
direction of Jeff and Tonya Large, President and Vice President of
the Company, respectively.
Henry M. Nahmad, EVI’s Chairman and CEO, said: “We are honored
to join the Large family and their team at Laundry Systems of
Tennessee. Jeff and Tonya are successful entrepreneurs with a
continued passion and commitment to growth. We are excited to
collaborate with them and their team in the pursuit of our mutual
long-term growth goals.”
EVI’s Buy-and-Build
Strategy
Since November of 2016, EVI has acquired twelve businesses and
is the fastest growing company in the commercial laundry industry
with a four-year compounded annual growth rate for revenue of over
70%. EVI’s buy-and-build strategy includes, identifying and
partnering with great businesses, retaining and empowering
entrepreneurial leadership teams, allocating resources to
accomplish high-growth objectives, establishing an ownership
culture that rewards performance, and promoting collaboration in
the pursuit of best operating practices, innovative ideas, and
growth.
Mr. Nahmad added: “We remain very active in our pursuit of
additional acquisitions of and strategic investments in other great
businesses in our industry and in those industries that meet our
financial and strategic criteria. Given our record, reputation, and
appetite for significant growth, we believe EVI is well-positioned
to capitalize on a growing number of opportunities.”
The transaction is expected to close upon the satisfaction of
closing conditions.
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 mergers with
Laundry Systems of Tennessee and Affiliates 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 Laundry Systems of Tennessee
and Affiliates and EVI Industries plans with respect thereto, the
risk that the conditions to closing the proposed mergers may not be
satisfied and that the proposed mergers 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 or merger opportunities, and the impact
of any such acquisitions or mergers 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, 2019, filed
with the SEC on September 13, 2019, as amended by its Annual Report
on Form 10-K/A for the fiscal year ended June 30, 2019, filed with
the SEC on October 28, 2019. 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) 402-9300 Sloan Bohlen
(203) 428-3210
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