MIAMI — EnviroStar Inc., a distributor of commercial, industrial and vended laundry products and industrial boilers, including related parts and supplies, has executed a definitive purchase agreement to acquire substantially all the assets and certain liabilities of Houston, Texas-based Scott Equipment Inc., the company reports.
EnviroStar says it will purchase the distributor of on-premises laundry (OPL) and vended laundry products, and provider of related installation and maintenance services, for $13 million, 50% of which will be paid in cash and 50% in EVI common stock.
The addition of Scott Equipment to EnviroStar’s existing Dallas operations is expected to result in more than $50 million of revenues derived primarily in Texas by 19 sales professionals, supported by 32 service professionals, and serving more than 3,000 OPL and vended laundry customers, according to the company.
Scott Equipment has been under the continuous ownership and leadership of John and Scott Martin since its inception.
“Joining EVI will provide us opportunities to offer more products and services to our OPL and vended laundry customers and facilitate growth opportunities in the large commercial and institutional laundry segments across the State of Texas and Southern Louisiana,” says Scott Martin, president of Scott Equipment. “Ultimately, EVI represented the industry’s best solution for long-term growth of our business and new opportunities for our valued employees.”
EnviroStar says Scott Equipment will operate as a subsidiary of the company from its present locations, under its existing leadership, with all its employees, and conduct business as it has historically.
“John Martin, Scott Martin and the Scott Equipment team built a successful laundry distribution and service business by creating deep personal relationships with their customers and delivering them high-quality laundry solutions time and again,” says Henry M. Nahmad, EnviroStar’s chairman and CEO. “We welcome Scott Martin and his distinguished team of employees to the EVI Family and we look forward to working with them and our valued suppliers in the pursuit of growth in the years ahead.”
The transaction is expected to close upon the satisfaction of closing conditions. EVI expects the addition of Scott Equipment to be accretive to its fiscal year ended June 30, 2019.