EVI Industries, Inc. (NYSE American:EVI) announced today that it previously executed a definitive purchase agreement to acquire substantially all the assets and certain liabilities of Commercial Laundry Products, Inc., Professional Laundry Systems of PA, Inc., and Professional Laundry Systems West, Inc. (collectively “PLS”) using a combination of cash and EVI common stock. PLS is a New York-based distributor of commercial and vended laundry products and a provider of related installation and maintenance services.
Alex Harris and Paul Cousins, Co-Owners of PLS, jointly said, “We are honored to join the EVI family of commercial laundry businesses. We are excited about the new opportunities available to our employees and we look forward to working with the EVI businesses and our loyal suppliers in the pursuit of long-term growth.”
Given EVI’s recent acquisition of PAC Industries in February of 2019, the addition of PLS is consistent with the Company’s stated goal to grow its sales and service operations across the northeast. The acquired companies will operate under the name “Professional Laundry Systems,” with its current team of over fifteen laundry professionals and with the support and resources provided by EVI.
Henry M. Nahmad, EVI’s Chairman and CEO, commented, “Alex Harris and Paul Cousins built a successful business servicing thousands of commercial laundry customers in the northeast. We welcome them and their team to the EVI family and look forward to working together to build PLS.”
The transaction is expected to close upon the satisfaction of customary closing conditions.
About EVI Industries
EVI Industries, Inc., through its wholly-owned subsidiaries, is a distributor that generates revenues by selling, leasing or renting, through its extensive sales organization, commercial, industrial and vended laundry, dry-cleaning, and material handling equipment, steam and hot water boilers, water reuse and filtration systems, and related replacement parts and accessories. Additionally, EVI designs, plans, and installs turn-key laundry, dry cleaning, boiler, and water filtration systems and provides maintenance services through its robust technical service organization.
The EVI’s customers include retail, commercial, industrial, institutional, and government customers. Purchases made by customers range from parts and accessories, to single or multiple units of equipment, to large complex systems, as well as installation and maintenance services. EVI believes that the increase in equipment sales provides a strong foundation for EVI to further strengthen its customer relationships, including that they may in the future result in higher gross margin opportunities from the sale of parts, accessories, supplies, and technical services related to the equipment.
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, 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 acquisitions of PLS and its affiliates may not be accretive to EVI’s earnings or otherwise have a positive impact on EVI’s operating results or financial condition to the extent anticipated or at all, integration risks, risks related to the business, operations and prospects of each of PLS’ and its affiliates’ plans with respect thereto, the risk that the conditions to closing the proposed acquisitions may not be satisfied and that the proposed acquisitions may not otherwise be consummated when expected, in accordance with the contemplated terms, or at all, and the risks related to EVI’s operations, results, financial condition, financial resources, and growth strategy, including EVI’s ability to find and complete other acquisition opportunities, and the impact of any such acquisitions on EVI’s operations, results and financial condition. Reference is also made to other economic, competitive, governmental, technological and other risks and factors discussed in EVI’s filings with the Securities and Exchange Commission, including, without limitation, those disclosed in the “Risk Factors” section of EVI’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018, filed with the SEC on September 13, 2018. Many of these risks and factors are beyond EVI’s control. In addition, past performance and perceived trends may not be indicative of future results. EVI 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 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.