MIAMI — EnviroStar Inc. (EVI), a distributor of commercial laundry and drycleaning equipment, has executed a definitive purchase agreement to acquire substantially all the assets and certain liabilities of fellow distributor Scott Equipment Inc., based in Houston.
EnviroStar says Scott Equipment is one of Houston’s leading distributors of on-premises and vended laundry products and providers of related installation and maintenance services, Since its inception, it has been under the continuous ownership and leadership of John and Scott Martin.
Payment of the $13 million purchase price will be split evenly between cash and shares of EVI common stock. Publicly held EVI expects the addition of Scott Equipment to be accretive to its fiscal year ended June 30, 2019.
Consistent with EVI’s operating philosophy, Scott Equipment 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.
The addition of Scott Equipment to EVI’s existing Dallas operations is expected to result in over $50 million of revenues derived primarily in Texas by 19 sales professionals, supported by 32 service professionals, and serving over 3,000 OPL and vended laundry customers.
“Joining EVI will provide us opportunities to offer more products and services to our OPL and vended laundry customers and facilitate growth opportunities in the large commercial and institutional laundry segments across the state of Texas and Southern Louisiana,” says Scott Martin, president of Scott Equipment. “Ultimately, EVI represented the industry’s best solution for long-term growth of our business and new opportunities for our valued employees.”
“John Martin, Scott Martin, and the Scott Equipment team built a successful laundry distribution and service business by creating deep personal relationships with their customers and delivering them high-quality laundry solutions time and again,” says Henry M. Nahmad, EVI chairman and CEO. “We welcome Scott Martin and his distinguished team of employees to the EVI Family, and we look forward to working with them and our valued suppliers in the pursuit of growth in the years ahead.”
The transaction is expected to close upon the satisfaction of closing conditions.
EnviroStar seeks to grow its North American market share through the execution of a “buy-and-build” strategy. The company says it intends to focus on buying market-leading laundry and commercial cleaning products businesses, and building them through the implementation of a growth culture that focuses on adding new locations, offering a more expansive and complimentary product line, and delivering a vast array of technical services.
In less than two years, EnviroStar has also acquired Western State Design (based in California), Martin-Ray Laundry Systems (Colorado), Tri-State Technical Services (Georgia) and Aadvantage Laundry Systems (Texas).
RELATED STORIES:
EnviroStar to Acquire Aadvantage Laundry Systems, Dec. 18, 2017
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].