MIAMI — EnviroStar Inc. (EVI), a distributor of commercial laundry and drycleaning equipment, has executed a definitive asset purchase agreement to acquire substantially all assets of Tri-State Technical Services Inc., a distributor of commercial, industrial and vended laundry products and provider of laundry installation and maintenance services based in Georgia.
Payment of the $16.5 million purchase price will be split between cash and shares of EVI common stock. Publicly held EVI expects the addition of Tri-State to be accretive to its current fiscal year ending June 30, 2018. The transaction is expected to close within 45 days, subject to customary due diligence and closing conditions.
Consistent with EVI’s philosophy, Tri-State will operate as an EVI subsidiary under its current name and from its present locations, and will continue to be led by President Matt Stephenson and Tri-State’s existing employees.
The addition of Tri-State provides EVI contiguous territory from Florida through the southern Mid-Atlantic states, which the company says will create new opportunities to deliver more products and technical services to its growing customer base in the region.
Founded by Stephenson in 1995, Tri-State operates from four distribution facilities serving over 8,500 customers throughout Georgia, South Carolina, North Carolina and southern Virginia, which EVI describes as “some of the fastest growing and most stable laundry markets in the nation.”
Tri-State employs 66 people, including 28 service personnel, and distributes a comprehensive line of laundry equipment and related parts and supplies, consisting of over 7,500 SKUs that include Pellerin Milnor, Speed Queen, Maytag and Chicago Dryer Co. branded products.
Under Stephenson’s direction, Tri-State has increased its revenues, profitability and market share, EVI says, earning it recognition as one of the leading distributors and service providers in the Southeast.
Tri-State generated approximately $27 million in revenue for the 12 months ended June 30, 2017, EVI says, derived from sales of equipment, parts and supplies; the performance of installation and maintenance services; and from the rental of commercial and vended laundry equipment.
“On behalf of everyone at Tri-State, we are excited to be joining the growing group of outstanding commercial laundry distributors in the EVI family,” Stephenson says. “I believe in the EVI vision and we are confident that with EVI, Tri-State will continue to expand and be a valuable contributor to EVI’s long-term growth objectives.”
“EVI is a growing group of accomplished entrepreneurs with an unrelenting passion and commitment for growth,” says Henry M. Nahmad, EVI chairman/CEO. “Our operating philosophy is a natural fit for these entrepreneurs who also seek to continue building their company as part of a broad family of businesses with the common goal of creating a North American enterprise. Matt Stephenson exemplifies the entrepreneurial vision and drive we pursue.”
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