MIAMI — Commercial laundry and drycleaning equipment distributor EnviroStar Inc. (EVI) reports it has executed definitive merger agreements to acquire substantially all the assets and certain liabilities of fellow distributors Worldwide Laundry Inc., also based in Miami, and Skyline Equipment Inc., based in Houston, Texas, using a combination of cash and EVI stock. The purchase prices were not announced.
The proposed acquisitions are unrelated to EVI’s other pending acquisition involving a Western-based distributor announced in late September, Michael Steiner, EVI executive vice president, tells American Coin-Op.
Worldwide is a distributor of vended and on-premise laundry products and a provider of installation and maintenance services to customers in southeast Florida and select countries in the Caribbean and Latin America.
The proposed acquisition will increase EVI’s market share in southeast Florida and will provide access to key brands of vended and on-premise laundry products that expand EVI’s existing product offering, the company says.
It will be EVI’s second acquisition of a Florida-based business, which will further increase its leading market share position in that state, EVI says. With the added leadership, experience and resources of its primary Florida business unit, Steiner Atlantic, EVI expects to pursue domestic and international growth opportunities in the sale, installation and service of vended and on-premise laundry markets.
Skyline is a distributor of on-premise and vended laundry products and a provider of installation and maintenance services to healthcare, hospitality, correctional, institutional, and vended laundry customers in the central and southern regions of Texas.
As part of EVI, Skyline will have the opportunity to collaborate with other EVI business units in the region in the pursuit of new growth opportunities. Its addition is consistent with EVI’s goal to build the largest commercial laundry distributor with a comprehensive product offering and a robust service department to best serve customers.
Henry M. Nahmad, EVI’s chairman and CEO, says his company welcomes the two new teams and looks forward to working with them and suppliers in the pursuit of growth.
Both transactions are expected to close upon satisfaction of closing conditions, and EVI expects the additions to be accretive to its fiscal year ended June 30, 2019.
The additions of Worldwide Equipment, Skyline Equipment, and the distributor not yet identified publicly will bring to nine the number of laundry equipment distributors that EVI has acquired since executing a buy-and-build growth strategy with the completion of fiscal year 2016.
Previous acquisitions include Western State Design, Martin-Ray Laundry Systems, Tri-State Technical Services, Aadvantage Laundry Systems, Scott Equipment and Industrial Laundry Services.