EnviroStar Acquires Western State Design
EnviroStar Inc., Miami, recently announced that it has entered an agreement to acquire substantially all of the assets of Western State Design LLC, a distributor of commercial, industrial and coin-operated laundry products, and a provider of installation and routine maintenance services. The parties intend to close the transaction promptly after all the closing conditions are satisfied, which is expected to occur within the next 30 to 45 days, according to a news release.
The agreed upon purchase price is $28 million, of which $18 million will be paid in cash at the closing and $10 million will be paid in shares of EnviroStar’s common stock. Founded in 1974 and based in Hayward, CA, Western State Design distributes a comprehensive line of commercial and industrial laundry equipment and related parts for new laundry facilities and to the replacement laundry market. Western State Design distributes certain commercial laundry brands on an exclusive basis within the states of California, Oregon, Washington, Alaska, and parts of Nevada, Arizona and Idaho.
Western State Design serves more than 6,000 customers in the healthcare, hospitality, cruise line, correctional, government, and commercial and coin-operated laundry industries. For the 12 months ended Dec. 31, 2015, Western State Design generated approximately $60.2 million in revenue, the release said.
Western State Design will operate as a wholly owned subsidiary of EnviroStar under its current name, from its present locations, led by its existing management team and employees, and with the added benefit of EnviroStar’s support and resources to assist Western State Design in the execution of its growth plans. Following the closing of the deal, Western State Design President Dennis Mack will be named a director and executive officer of EnviroStar, and Executive Vice President Tom Marks will become an executive officer of EnviroStar.
Mack and Marks jointly said that, “On behalf of the entire team at Western State Design, we are very pleased to be joining the EnviroStar family of commercial laundry businesses. EnviroStar’s goal of becoming the industry’s largest and most versatile commercial laundry products distributor and service provider is promising, and we are aligned with EVI’s business plans and long-term growth strategy. We are also excited about the new opportunities our employees will have to continue their mission of providing superior products, exceptional service, and competitive pricing to our valued customers for many years into the future.”
To read the full release, click here.