EVI Industries Completes Acquisition of Ed Brown Distributors
EVI Industries (NYSE American: EVI) has completed the acquisition of Ed Brown Distributors, a Dallas-based provider of commercial laundry products and services. This acquisition, paid in cash, will enhance EVI's capabilities in the central US region. EVI’s Chairman and CEO, Henry M. Nahmad, emphasized that Ed Brown’s existing team and operations will remain unchanged to ensure continuity. Since 2016, EVI has acquired 26 businesses, reinforcing its position as a leader in the North American commercial laundry distribution and service industry. EVI's strategy focuses on partnering with influential businesses, retaining leadership, fostering innovation, and pursuing aggressive growth plans.
- Acquisition of Ed Brown Distributors expands EVI's presence in the central US region.
- Transaction was completed with cash payment, indicating strong financial position.
- Ed Brown team and operations remain unchanged, ensuring continuity and stability.
- Since 2016, EVI has acquired 26 businesses, showing a strong track record in mergers and acquisitions.
- EVI's buy-and-build strategy promotes growth, innovation, and modernization.
- No specific financial metrics or revenue projections were provided, limiting the ability to gauge financial impact.
- Details on integration costs and potential challenges were not disclosed, posing a risk for future expenses.
Insights
EVI Industries continues its aggressive buy-and-build strategy with its recent acquisition of Ed Brown Distributors. This move is a part of EVI's long-term growth plan to expand its footprint in the commercial laundry industry. Financially, this acquisition solidifies EVI's presence in the central region of the U.S., which could lead to improved economies of scale and operational efficiencies.
From an investment perspective, the acquisition could lead to short-term costs impacting immediate earnings, but the long-term benefits include potential revenue growth and increased market share. Investors should monitor integration progress and any associated costs, as well as any synergies that this acquisition brings to EVI's financials.
Additionally, the use of cash for this acquisition indicates strong liquidity and confidence in the return on investment. However, investors should be mindful of any potential debt implications if cash reserves become strained from multiple acquisitions.
In terms of market positioning, EVI Industries is strategically enhancing its value proposition by integrating Ed Brown Distributors. This acquisition allows EVI to tap into the established customer base and service network of Ed Brown, which is important for maintaining and expanding market share in the commercial laundry industry. Bringing in experienced sales and service personnel from Ed Brown also adds to EVI's ability to offer superior customer service, a key differentiator in the industry.
For the retail investor, this move indicates that EVI is committed to pursuing growth through acquisitions, a strategy that has historically paid off for the company. It's essential to watch how this acquisition drives regional growth and whether it can meet the company’s ambitious growth objectives without diluting its core business.
Henry M. Nahmad, EVI’s Chairman and CEO, commented: “With the acquisition of Ed Brown, we add a team of experienced sales and service personnel and new product representations that combined are important to achieving our growth objectives in the central region of
EVI’s Buy and Build Philosophy
Since 2016, EVI has acquired 26 businesses and has become the leader in the North American commercial laundry distribution and service 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,
- Collaborate on new and transformative ideas to foster a spirit of growth and innovation,
- Pursue aggressive growth plans and help the leadership team achieve their goals,
- Deploy advanced technologies to modernize operations and enhance the customer experience, and
- Create an ownership culture by motivating the team with long-term equity.
About EVI Industries
EVI Industries, Inc., through its wholly owned subsidiaries, is a value-added distributor and a provider of advisory and technical services. Through its vast sales organization, the Company provides its customers with planning, designing, and consulting services related to their commercial laundry operations. The Company sells and/or leases its customers commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories. Additionally, through the Company’s robust network of commercial laundry technicians, the Company provides its customers with installation, maintenance, and repair services. The Company’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 the purchase of the Company’s installation, maintenance, and repair services.
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, 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 acquisition of Ed Brown Distributors 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 Ed Brown Distributors and EVI’s plans with respect thereto. 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, 2023, filed with the SEC on October 5, 2023, as amended by its Annual Report on Form 10-K/A for the fiscal year ended June 30, 2023, filed with the SEC on October 27, 2023. 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.
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Investor Relations
EVI Industries, Inc.
4500 Biscayne Boulevard, Suite 340
(305) 402-9300
info@evi-ind.com
Source: EVI Industries, Inc.
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