MIAMI — EnviroStar Inc. (EVI), a distributor of commercial laundry and drycleaning equipment, has executed a definitive asset purchase agreement to acquire substantially all assets and certain liabilities of Zuf Acquisitions I LLC, doing business as Aadvantage Laundry Systems and Sky-Rent LP (collectively “Aadvantage”).
Based in Dallas, Aadvantage is a prominent distributor of laundry products and a provider of installation and maintenance services to the new and replacement markets of the commercial and vended laundry industry.
Payment of the $17 million combined purchase price will be split evenly between cash and shares of EVI common stock. Publicly held EVI expects the addition of Aadvantage to be accretive to its current fiscal year ending June 30, 2018. The transaction is expected to close within 60 days of the announcement, subject to customary due diligence and closing conditions.
Consistent with EVI’s operating philosophy, Aadvantage will operate as a subsidiary of EVI from its present locations, under its existing leadership, with all its employees, and conduct business as it has historically.
For more than 20 years, Aadvantage has been under the continuous ownership and leadership of Mike Zuffinetti, with the addition of Ryan Smith in 2010. Under their direction, and with the dedication of Aadvantage’s 49 employees, Aadvantage is a “strong base” from which EVI expects to generate future growth in the Southwest and beyond.
For the 12 months ended June 30, Aadvantage generated more than $27 million in revenues from the sale of equipment, parts, supplies, and related installation and maintenance services. Revenues and profits include and are anchored by an “extensive, predictable, and growing portfolio” of laundry equipment rental and lease agreements, which EVI further describes as a “valuable expertise that presents a significant growth opportunity” for each EVI business.
“Aadvantage is an entrepreneurial organization with an unrelenting pursuit for growth and success,” says Zuffinetti. “EVI’s entrepreneurial culture, long-term vision, and operating philosophy presented a compelling proposition we believe will accelerate our growth and help us all achieve new levels of success.”
“We are completely aligned with EVI’s long-term goals,” adds Smith, “and we are excited about the new opportunities our employees will have to continue their mission of providing superior products, exceptional services, and competitive pricing to our valued customers in the years ahead.”
“Entrepreneurial leadership and success is a common thread of each addition to the EVI family,” says Henry M. Nahmad, EVI’s chairman and CEO. “With Aadvantage, EVI gains revenues, profits, and an experienced and innovative team from which future growth is possible. The EVI family is bigger and better with Mike, Ryan, and their team at Aadvantage.”
RELATED STORIES:
EnviroStar to Acquire Tri-State Technical Services, Sept. 18, 2017
EnviroStar to Acquire Martin-Ray Laundry Systems, June 19, 2017
EnviroStar to Acquire Fellow Distributor Western State Design for $28 Million, Sept. 14, 2016
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].