EVI Industries, Inc. (NYSE American: EVI) announced today that
it executed a definitive merger agreement to acquire Barrington,
New Hampshire based Yankee Equipment Systems, Inc., a distributor
of commercial laundry products and a provider of related technical
installation and maintenance services.
Yankee Equipment Systems is led by Peter Limoncelli, a young,
well-respected, and dynamic leader and entrepreneur that together
with a team of 56 skilled laundry professionals, have consistently
increased Yankee’s revenue, profitability, and market share in the
New England region of the northeastern United States. This addition
to the EVI family reflects EVI’s continued leadership role in the
transformation of the North American commercial laundry industry
and adds approximately $31 million in revenue that is well
distributed over 2,200 industrial, on-premise, vended, and
multi-family laundry customers.
Henry M. Nahmad, EVI’s Chairman and Chief Executive Officer,
commented: “Yankee Equipment Systems has a long and magnificent
legacy and we are proud to become part of their family. Consistent
with our operating model, Yankee Equipment Systems will continue to
be led by Peter Limoncelli and will operate under its current name,
from its present location, and with its existing team to provide
its customers, employees, and vendor partners business continuity.
Their reputation and success, which are built on a tradition of
providing exceptional laundry solutions backed by great service,
have earned them strong customer relationships that we intend to
help them build on.”
Expansion and Growth in the Northeast Region
This acquisition complements other EVI acquisitions completed in
2019, including the purchase of PAC Industries and Professional
Laundry Systems. In connection with this growth and with EVI’s
optimization plan, Mr. Limoncelli will also be named the President
of EVI’s Northeast Operations, which will consist of the operations
of Yankee Equipment Systems, PAC Industries, and Professional
Laundry Systems and include a combined 120 commercial laundry
professionals serving customers throughout the region.
Mr. Nahmad commented: "EVI builds density in markets to improve
customer service and to provide vendor partners with growth
opportunities. Yankee Equipment Systems significantly expands our
footprint in the Northeast and positions us to continue investing
in this highly fragmented region.”
Transaction Summary
The consideration to be paid by EVI in connection with this
acquisition is $13.5 million, which consistent with EVI’s
historical transactions, will be paid in a combination of cash and
EVI common stock. The transaction is expected to close upon the
satisfaction of closing conditions.
EVI’s Buy and Build Philosophy
Since October of 2016, EVI has acquired fourteen (14) commercial
laundry businesses and continues to be the fastest growing and only
public company in the North American commercial laundry
distribution industry. 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 big ideas to foster a spirit of growth and
innovation.
Mr. Nahmad commented: “We remain very active and aspire to make
additional investments in other great businesses in and
complimentary to our industry. Given our record, reputation, and
appetite for significant growth, EVI is well-positioned to
capitalize on a growing number of opportunities.”
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 merger with
Yankee Equipment Systems 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 Yankee Equipment Systems and EVI
Industries plans with respect thereto, the risk that the conditions
to closing the proposed merger may not be satisfied and that the
proposed merger 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, 2020, filed with the SEC on
September 14, 2020. 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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