EnviroStar Inc., based in Miami, recently announced it has executed a definitive asset purchase agreement to acquire substantially all of the assets of Tri-State Technical Services Inc., a distributor of commercial, industrial and vended laundry products. EVI expects the addition of Tri-State to be accretive to its current fiscal year, which ends June 30, 2018. The purchase price is reported to be $16,500,000, of which half will be paid in cash, while the other half will be paid in EVI common stock.
Founded in 1995 by Matt Stephenson, Georgia-based Tri-State operates from four distribution facilities serving more than 8,500 customers throughout Georgia, South Carolina, North Carolina and southern Virginia. Tri-State has 66 employees, and currently distributes such brands as Speed Queen, Maytag and Pellerin-Milnor.
For the 12 months ended June 30, 2017, Tri-State generated revenues of approximately $27 million, which were derived from the sale of equipment, parts and supplies; the performance of installation and maintenance services; and the rental of commercial and vended laundry equipment.
Tri-State will operate as a subsidiary of EVI under its current name and from its present locations, and will continue to be led by 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 are expected to create new opportunities to deliver more products and services to the company’s growing customer base within the region.