EVI Industries to Acquire Clean Designs, Inc., and Clean Route LLC
April 26 2022 - 10:42AM
Business Wire
EVI Industries, Inc. (NYSE American: EVI) announced today that
it executed a definitive agreement to acquire Lakewood, CO based
Clean Designs, Inc. and Clean Route LLC (together “Clean Designs”),
a distributor of commercial laundry products and a provider of
related technical installation and maintenance services to
on-premise, vended, and multifamily laundry customers. The addition
of Clean Designs further strengthens EVI’s leading market share
position in the West region of the United States. Upon the
completion of the Clean Designs acquisition, EVI will have acquired
eighteen (18) commercial laundry businesses and continues to be the
fastest growing and only publicly listed company devoted to the
North American commercial laundry distribution and service
industry.
With Clean Designs, EVI adds an experienced sales team with
established customer relationships and a consistent record of
growth, a service team with a longstanding reputation for providing
reliable services, and a management team from which the Company may
further build its commercial laundry operations in and around the
state of Colorado. Looking forward, Clean Designs will offer a
broader product range, pursue new growth opportunities, and have
access to advanced technologies the Company is deploying to drive
future growth, efficiency, and profitability. Consistent with EVI’s
operating philosophy, Clean Designs will operate as a subsidiary of
EVI under its current name and from its present location, will
continue to be led by Tim Stoklosa, and have the full extent of
EVI’s resources with which to execute on the Company’s long-term
growth strategy.
Henry M. Nahmad, EVI’s Chairman and Chief
Executive Officer, commented: “Each acquisition is integral to
achieving our long-term growth and profitability goals. Our Company
is especially excited about the benefits we will derive from the
addition of Tim Stoklosa and the Clean Designs team. We also look
forward to working with our loyal suppliers who welcome the growth
opportunities this acquisition represents and to delivering a
broader product range and enhanced technical service capabilities
to commercial laundry customers across the region.”
EVI’s Buy and Build Philosophy
Key components of EVI’s buy-and-build strategy include:
- Identify and partner with great businesses led by influential
leaders,
- Retain the leadership team, honor the company culture and
empower them,
- Pursue aggressive growth plans and help the leadership team
achieve their goals,
- Create an ownership culture by motivating the team with
long-term equity, and
- Collaborate on new and transformative ideas to foster a spirit
of growth and innovation. Mr. Nahmad commented: “We believe that
the thoughtful execution of our buy-and-build growth strategy has
earned us a positive reputation in and around the commercial
laundry industry, including among owners of quality businesses. We
remain very active in the pursuit of additional investments in
other great businesses and given our record, reputation, and
appetite for significant growth, EVI is well-positioned to
capitalize on a growing number of opportunities.”
The transaction is expected to close upon the satisfaction of
customary 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 acquisitions
of Clean Designs and Clean Route 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 Clean Designs and Clean Route
and EVI Industries plans with respect thereto, the risk that the
conditions to closing the proposed acquisitions may not be
satisfied and that the proposed acquisitions 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, 2021, filed
with the SEC on September 13, 2021, as amended by its Annual Report
on Form 10-K/A for the fiscal year ended June 30, 2021, filed with
the SEC on October 28, 2021. 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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