MIAMI — Commercial laundry and drycleaning equipment distributor EnviroStar Inc. (EVI) has executed a definitive asset purchase agreement to acquire substantially all of the assets of fellow distributor Tri-State Technical Services Inc., the company reports.
The transaction is expected to close sometime in October, subject to customary due diligence and closing conditions. EVI expects the addition of Tri-State to be accretive to its current fiscal year ended June 30, 2018. The purchase price to be paid is $16.5 million, of which 50% will be paid in cash and 50% will be paid in EVI common stock.
EnviroStar says Georgia-based Tri-State has 66 employees, including 28 service personnel, and distributes a comprehensive line of laundry equipment and related parts and supplies, consisting of over 7,500 SKUs, throughout Georgia, South Carolina, North Carolina and southern Virginia.
Consistent with EVI’s operating philosophy, the company says Tri-State will operate as a subsidiary under its current name and from its present locations, and will continue to be led by founder and president, Matt Stephenson, and Tri-State’s existing employees.
The company says the addition of Tri-State provides EVI contiguous territory from Florida through the southern Mid-Atlantic states, which will create new opportunities to deliver more products and technical services to EVI’s growing customer base in the region.
“On behalf of everyone at Tri-State, we are excited to be joining the growing group of outstanding commercial laundry distributors in the EVI family,” Stephenson says. “I believe in the EVI vision and we are confident that with EVI, Tri-State will continue to expand and be a valuable contributor to EVI’s long-term growth objectives.”
“EVI is a growing group of accomplished entrepreneurs with an unrelenting passion and commitment for growth,” says Henry M. Nahmad, EVI’s chairman and CEO. “Our operating philosophy is a natural fit for these entrepreneurs who also seek to continue building their company as part of a broad family of businesses with the common goal of creating a North American enterprise. Consequently, we are thrilled to welcome Matt and the Tri-State team to the EVI family and we look forward to their valuable contributions.”