MIAMI — EnviroStar Inc. (EVI), a distributor of commercial laundry and drycleaning equipment, has executed a definitive asset purchase agreement to acquire substantially all the assets of Martin-Ray Laundry Systems Inc., a distributor of commercial, industrial, and vended laundry products and provider of laundry installation and routine maintenance services based in Denver.
Payment of the $4 million purchase price will be split between cash and shares of EnviroStar common stock. The transaction is expected to be accretive to EVI’s earnings.
Martin-Ray generated approximately $11.5 million in revenue for the 12 months ending March 31, EnviroStar says. The Colorado company distributes key equipment brands, including Pellerin Milnor, Chicago Dryer Co. and Speed Queen.
EnviroStar says the acquisition—which closed June 20—establishes its presence in the Mountain States and provides a business unit from which to execute on future growth in the region.
Martin-Ray serves more than 1,500 customers in the healthcare, hospitality, commercial, and vended laundry markets. Led by Jim Hohnstein, Bill Mann and Timm Mullen, Martin-Ray will operate as a wholly owned subsidiary of EVI under its current name, from its present locations, with its existing employees, and with the added benefit of operating under EVI’s entrepreneurial and growth focused culture.
The men say they are excited to join the EVI family. With EVI’s capital and relationship resources, they are confident that Martin-Ray will achieve its ambitious growth objectives and contribute to EVI’s success.
“Our acquisition pipeline remains strong and our expected addition of Martin-Ray represents another step towards achieving EVI’s long-term growth strategy to buy and build the largest commercial laundry distribution and service company in North America,” says Henry M. Nahmad, EVI chairman and CEO.
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