EnviroStar, Inc. to Acquire Scott Equipment, Inc.
June 21 2018 - 8:09AM
Business Wire
EnviroStar, Inc. (NYSE American: EVI) announced today that it
executed a definitive purchase agreement to acquire substantially
all the assets and certain liabilities of Houston, Texas based
Scott Equipment, Inc. for $13.0 million, 50% of which will be paid
in cash and 50% in EVI common stock. The addition of Scott
Equipment to EVI’s existing Dallas operations is expected to result
in over $50 million of revenues derived primarily in the State of
Texas by 19 sales professionals, supported by 32 service
professionals, and serving over 3,000 on premise laundry (OPL) and
vended laundry customers.
Scott Equipment is one of Houston’s leading distributors of OPL
and vended laundry products and providers of related installation
and maintenance services, which since its inception has been under
the continuous ownership and leadership of John and Scott Martin.
Scott Martin, President of Scott Equipment, said, “Joining EVI will
provide us opportunities to offer more products and services to our
OPL and vended laundry customers and facilitate growth
opportunities in the large commercial and institutional laundry
segments across the State of Texas and Southern Louisiana.
Ultimately, EVI represented the industry’s best solution for
long-term growth of our business and new opportunities for our
valued employees.”
Consistent with EVI’s operating philosophy, Scott Equipment will
operate as a subsidiary of EVI from its present locations, under
its existing leadership, with all its employees, and conduct
business as it has historically. Henry M. Nahmad, EVI’s Chairman
and Chief Executive Officer, commented, “John Martin, Scott Martin,
and the Scott Equipment team built a successful laundry
distribution and service business by creating deep personal
relationships with their customers and delivering them high-quality
laundry solutions time and again. We welcome Scott Martin and his
distinguished team of employees to the EVI Family and we look
forward to working with them and our valued suppliers in the
pursuit of growth in the years ahead.”
The transaction is expected to close upon the satisfaction of
closing conditions. EVI expects the addition of Scott Equipment to
be accretive to its fiscal year ended June 30, 2019.
About EnviroStar
EnviroStar, Inc. is a distributor of commercial, industrial, and
vended laundry products and industrial boilers, including related
parts and supplies. Through its subsidiaries, EVI sells its
products and provides installation and maintenance services to
thousands of customers across the United States, the Caribbean, and
Latin America. EVI seeks to grow its North American market share
through the execution of its buy-and-build strategy. In that
pursuit, EVI intends to focus on buying market-leading laundry and
commercial cleaning products businesses, and building them through
the implementation of a growth culture that focuses on adding new
locations, offering a more expansive and complimentary product
line, and delivering a vast array of technical services.
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 acquisition of Scott Equipment 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 Scott
Equipment and EnviroStar’s 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 EnviroStar’s operations,
results, financial condition, financial resources, and growth
strategy, including EnviroStar’s ability to find and complete other
acquisition opportunities, and the impact of any such 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, 2017 filed with the SEC on
September 28, 2017. 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/20180621005610/en/
EnviroStar, Inc.Henry M. Nahmad, 305-754-8676orMichael Steiner,
305-754-8676
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