MIAMI — Commercial laundry and drycleaning equipment distributor EnviroStar Inc. (EVI) reports it has completed its merger with Lucken Inc., the parent company of Washington Automated Inc. (WAI). Terms of the deal were not announced.
The deal was first announced in September, when EnviroStar reported it was working to acquire a “prominent distributor of laundry products and a provider of installation and maintenance services to the new and replacement markets of the vended and commercial laundry industry based in the Western United States.” At the time, Michael Steiner, EVI executive vice president, told American Coin-Op that the company was not identified because of confidential matters to be worked out prior to closing.
The addition of WAI builds on EVI’s market share position in the on-premise laundry and vended laundry segments in the West and expands the service capabilities of EVI’s existing western operations.
EVI expects that WAI will continue to operate as it has historically, under the leadership of Ryan Lucken, executing with the same people, using the same name, and with the support and resources of EVI and all of EVI’s existing and future business units.
“All of us at Washington Automated are excited about joining a company with an entrepreneurial culture and a proven strategy for long-term growth and success,” Lucken says.
“Ryan Lucken and his team built a successful business by building quality relationships with and delivering exceptional service to their customers,” says Henry M. Nahmad, EVI chairman and CEO. “We welcome Washington Automated to the EVI family and look forward to building upon their success.”
The addition of Washington Automated brings 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. Earlier acquisitions include Western State Design, Martin-Ray Laundry Systems, Tri-State Technical Services, Aadvantage Laundry Systems, Scott Equipment, Industrial Laundry Services, Worldwide Laundry and Skyline Equipment.
In other EnviroStar news, the company reported record results for the first quarter of its fiscal year ending June 30, 2019. Revenue increased 65% to $43.4 million, gross margin dollars increased 58% to $9.7 million, operating income increased 46% to $1.4 million, net income increased 41% to $0.8 million, and adjusted EBITDA increased 53% to $2.4 million.
EVI reports the improved performance is due primarily to the results of Tri-State Technical Services and Aadvantage Laundry Systems.
Also during the quarter, EVI entered into a new five-year, $100 million syndicated credit facility with Bank of America and US Bank as joint lead arrangers, and Fifth Third Bank. The new credit facility includes a $100 million revolving line of credit and an accordion feature which, at EVI’s option, can expand commitments in the revolver to $140 million in the aggregate. It replaces an existing $27 million asset-based credit facility with Wells Fargo that was scheduled to mature in October 2021.