MIAMI — Commercial laundry and drycleaning equipment distributor EVI Industries (formerly EnviroStar Inc.) has acquired fellow distributor PAC Industries at a cost of $12.85 million.
EVI acquired all of the outstanding shares of PAC’s common stock as part of the agreement. Of the purchase price, $6.4 million was paid in cash, $6.25 million in EVI common stock, and $0.2 million in an assumed subordinated note.
Based in Harrisburg, Pennsylvania, PAC is a prominent distributor of commercial, industrial, and vended laundry products and a provider of related installation and maintenance services to the new and replacement markets of the laundry industry.
For the 12 months ended Dec. 31, 2018, PAC generated approximately $22.0 million in revenue from the sale of equipment, parts, supplies, and related installation and maintenance services, EVI reports.
PAC will operate as an EVI subsidiary from its present locations, under its existing leadership, and conduct business as it has historically, in line with EVI’s operating philosophy.
“On behalf of all of the employees and owners of PAC, we are thrilled to join the EVI family and are anxious to begin working towards accomplishing our collective long-term goals,” says Frank Costabile, president of PAC.
Since Jan. 1, 2018, EVI has completed seven acquisitions in the commercial laundry industry. The acquisition of PAC is EVI’s first in the Northeast, where the company expects to aggressively continue executing its buy-and-build growth strategy.
EVI also owns Washington Automated, Skyline Equipment, Worldwide Laundry, Industrial Laundry Services, Scott Equipment, Aadvantage Laundry Systems, Tri-State Technical Services, Martin-Ray Laundry Systems and Western State Design, all distributor acquisitions made since fall 2016.
“We welcome all of the valued employees and owners of PAC Industries to the EVI family,” says Henry M. Nahmad, EVI’s chairman and CEO. “Our goal remains to be the best-performing partner to each of our valued suppliers, to offer a comprehensive suite of products and world-class services to our customers, and to maintain an entrepreneurial culture that attracts the most talented entrepreneurs and professionals.”
EVI expects the addition of PAC to be accretive to its fiscal year ended June 30, 2019.