EVI Industries, Inc. (NYSE American: EVI) announced today that
it executed a definitive agreement to acquire Raleigh, NC based
Consolidated Laundry Equipment and Columbia, SC based Central
Equipment Company (collectively “CLE”), distributors of commercial
laundry products and providers of related technical installation
and maintenance services. The addition of CLE strengthens EVI’s
leading market share position in the southeast region of the United
States with over $90 million in revenue derived from offering a
wide and growing selection of commercial laundry products and
technical service capabilities to thousands of Industrial,
On-Premise, Vended, and Multi-Family Laundry customers.
For almost 20 years, CLE has operated under the continuous
ownership and management of Billy Kincaid. Under his direction, CLE
has consistently increased its revenues, profitability, and market
share, resulting in recognition as a leading distributor and
service provider of commercial laundry products in the southeast.
In addition to an experienced sales team with a record of
consistent sales growth, CLE boasts a robust and talented service
organization that is the cornerstone of longstanding customer
relationships. For the twelve months ended November 30, 2021, CLE
generated revenues of approximately $17 million, which were derived
from the sale of equipment, parts, and supplies, and the
performance of installation and maintenance services.
Billy Kincaid, President of CLE commented:
“EVI’s growth record and operational execution in the commercial
laundry industry is unparalleled. EVI also represents a number of
attractive long-term growth opportunities for CLE, our employees,
and our customers. We are excited to join the growing number of
successful commercial laundry businesses that form the EVI
Family.”
This addition to the EVI Family is further evidence of EVI’s
continued leadership role in the transformation of the North
American commercial laundry industry. The addition of CLE increases
EVI’s market share in the southeast and will result in new
opportunities to deliver more products and technical services to
EVI’s growing customer base in the region. Consistent with EVI’s
operating philosophy, CLE will operate as a subsidiary of EVI under
its current name and from its present locations and will continue
to be led by Billy Kincaid and CLE’s existing employees.
Henry M. Nahmad, EVI’s Chairman and Chief
Executive Officer, commented: “EVI continues to buy high-quality
businesses led by accomplished entrepreneurs and management teams
with an unrelenting commitment to growth. Our operating philosophy
is a natural fit for entrepreneurs and management teams who also
seek to continue building their company as part of a broad family
of successful businesses with the common goal of creating a North
American commercial laundry enterprise. Billy Kincaid exemplifies
the entrepreneurial vision and drive we pursue. Consequently, we
are thrilled to welcome Billy and the CLE team to the EVI Family,
and we look forward to their valuable contributions over the
long-term.”
EVI’s Buy and Build Philosophy
Upon the completion of this transaction, since October of 2016,
EVI will have acquired seventeen (17) 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 new and transformative ideas to foster a spirit
of growth and innovation. Mr. Nahmad commented: “We remain very
active in the pursuit of additional investments in other great
businesses in and complementary to our industry. Given our record,
reputation, and appetite for significant growth, EVI is
well-positioned to capitalize on a growing number of
opportunities.”
The acquisition of CLE is subject to certain closing conditions,
and there is no assurance that the acquisition will be
consummated.
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
Consolidated Laundry Equipment and Central Equipment Company 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
Consolidated Laundry Equipment and Central Equipment Company 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, 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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