EVI Industries to Acquire Laundry Pro of Florida
EVI Industries (NYSE American: 'EVI') announced its acquisition of Laundry Pro of Florida, a commercial laundry distributor and service provider based in Lakeland, FL. This acquisition strengthens EVI's market presence in Florida, adding a team with strong customer relationships and valuable product lines.
Laundry Pro generated approximately $12 million in revenue for the twelve months ending May 31, 2024. As part of EVI's operating model, Laundry Pro will retain its name and team to ensure continuity.
This acquisition marks EVI's 27th in the commercial laundry sector since 2016. The transaction, expected to close following customary conditions, will be paid in cash. EVI anticipates that Laundry Pro will contribute positively to its fiscal year ending June 30, 2025.
- EVI's acquisition of Laundry Pro strengthens its market share in Florida.
- Laundry Pro generated $12 million in revenue for the twelve-months ending May 31, 2024.
- The acquisition marks EVI's 27th in the commercial laundry sector, showcasing its aggressive growth strategy.
- Laundry Pro's experienced team and valuable product lines are expected to enhance EVI's customer value proposition.
- EVI anticipates the acquisition to be accretive to its fiscal results for the year ending June 30, 2025.
- The transaction's success depends on the fulfillment of customary closing conditions, which introduces some uncertainty.
- The acquisition will be paid entirely in cash, which could impact EVI's liquidity.
Insights
EVI Industries' acquisition of Laundry Pro represents a strategic move to consolidate its market share within the commercial laundry products and services sector. By integrating Laundry Pro’s $12 million revenue stream, EVI can enhance its distribution network and service capacity in Florida, a critical market for its expansion.
Financially, acquisitions of this nature can bring immediate revenue growth and potentially improve profitability through synergies such as cost reductions and cross-selling opportunities. With this deal being cash-based, it's essential to consider EVI's liquidity and potential debt impacts. Investors should note that the acquisition is expected to be accretive by the fiscal year ending June 30, 2025, suggesting it will contribute positively to earnings per share (EPS) post-integration. However, the success of such acquisitions often hinges on the smooth integration of operations and the retention of key personnel.
Given EVI's history of acquisitions and its leadership in the sector, this move aligns with its ‘buy-and-build’ strategy, aiming to achieve economies of scale and leverage its extensive operational expertise. The retention of Laundry Pro's management and brand continuity is strategic for maintaining customer relationships and operational stability.
While the acquisition appears promising, investors should remain cautious about the execution risks and monitor EVI's integration progress and any subsequent financial disclosures.
The acquisition of Laundry Pro by EVI Industries could significantly affect the competitive dynamics within the commercial laundry market in Florida. By adding Laundry Pro’s established customer base and product lines, EVI solidifies its presence and potentially gains a competitive edge over regional players. The commercial laundry market is characterized by steady demand driven by sectors such as hospitality, healthcare and multi-housing facilities, which require reliable laundry solutions and services.
This deal might also herald increased adoption of customer-facing technologies in Laundry Pro's operations, enhancing service offerings and customer satisfaction. The emphasis on maintaining existing leadership and company culture suggests that EVI values the established customer relationships and operational know-how of Laundry Pro.
Strategically, this acquisition supports EVI's broader growth objectives and could lead to market share expansion not just in Florida but set a precedent for future regional consolidations. Investors should consider the long-term market positioning and potential for recurring revenue streams as part of the company's growth narrative.
As is customary under EVI’s operating model, Laundry Pro will operate under its existing name and with its current team to provide continuity to customers, employees, and vendor partners. For the twelve months ended May 31, 2024, Laundry Pro generated revenues of approximately
Henry M. Nahmad, EVI’s Chairman and CEO, commented: “The achievement of our long-term goals requires time, patience, and thoughtful execution. Our operating philosophy is a natural fit for entrepreneurs and industry professionals who seek to build their company and careers as part of a broad family with common goals, principles, and values. We appreciate the thoughtfulness Ron Jansen, and his family undertook throughout this process. We are pleased to welcome the Laundry Pro team to the EVI family, and we look forward to their valuable contributions over the long-term.”
The transaction is expected to close upon the satisfaction of customary closing conditions. EVI expects Laundry Pro’s results of operations to be accretive to its fiscal year ended June 30, 2025.
EVI’s Buy and Build Philosophy
Since 2016, EVI has acquired twenty-six (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 proposed acquisition of Laundry Pro 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 Laundry Pro and EVI plans with respect thereto, the risk that the conditions to closing the proposed acquisition may not be satisfied and that the proposed acquisition 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 or merger opportunities, and the impact of any such acquisitions or mergers 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, 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.
(305) 402-9300
info@evi-ind.com
Source: EVI Industries, Inc.
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