EVI Industries to Acquire Commercial Laundry Equipment Company
11 February 2020 - 1:00AM
Business Wire
EVI Industries, Inc. (NYSE American: EVI) announced today that
it executed a definitive purchase agreement to acquire
substantially all the assets and certain liabilities of Richmond,
VA based Commercial Laundry Equipment Company, Inc.(“CLE”), a
distributor of on-premise and vended laundry products and a
provider of related installation and maintenance services to the
new and replacement markets of the commercial laundry industry.
This acquisition expands EVI’s sales and service presence in the
Mid-Atlantic U.S., which coincides with EVI’s strategy to build
distribution and service density in geographic markets through
which it may provide additional products and services and improve
customer service. CLE has a large customer base that is loyal to
the knowledge, experience, and capabilities of CLE’s sales and
service organization. Consistent with EVI’s operating model, CLE
will continue to operate under its existing name, with its existing
people, and under the leadership of Tom Brittle, President of
CLE.
Henry M. Nahmad, Chairman and CEO commented: “CLE is a unique
acquisition in that it serves customers in a geography where EVI
already has three businesses operating with wide-ranging
capabilities and with distinct product representations. CLE’s
customers will benefit from our approach to maintaining business
continuity and from the enhanced sales and service capabilities we
have in the region. We are thrilled to have CLE join the EVI
family.”
The transaction is expected to close upon the satisfaction of
closing conditions. Terms of the acquisition were not disclosed.
Consideration includes a combination of cash and EVI common
stock.
About EVI Industries
EVI Industries, Inc., through its wholly owned subsidiaries, is
a value-added distributor and a provider of advisory and technical
services. Through its vast sales organization, the Company provides
its customers with planning, designing, and consulting services
related to their commercial laundry operations. The Company sells
and/or leases its customers commercial laundry equipment
specializing in washing, drying, finishing, material handling,
water heating, power generation, and water reuse applications. In
support of the suite of products it offers, the Company sells
related parts and accessories. Additionally, through the Company’s
robust network of commercial laundry technicians, the Company
provides its customers with installation, maintenance, and repair
services. The Company’s customers include retail, commercial,
industrial, institutional, and government customers. Purchases made
by customers range from parts and accessories, to single or
multiple units of equipment, to large complex systems, as well as
installation, maintenance and repair 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 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 Commercial Laundry Equipment 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 Commercial Laundry Equipment
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, 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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version on businesswire.com: https://www.businesswire.com/news/home/20200210005419/en/
Henry M. Nahmad, Chairman and CEO – (305) 402-9300 Sloan Bohlen,
Investor Relations – info@evi-ind.com
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