EnviroStar to Acquire Western State Design for $28 Million

EnviroStar Inc., a commercial laundry and drycleaning equipment distributor based in Miami, recently executed a definitive asset purchase agreement to acquire substantially all of the assets of distributor Western State Design LLC, which is headquartered in Hayward, Calif.The closing of this transaction is subject to certain conditions, including financing. Pursuant to the agreement, the purchase price is $28 million, of which $18 million will be paid in cash at closing, which is expected by mid-October, and $10 million in shares of EVI’s common stock.Founded in 1974, 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. It distributes certain commercial laundry brands on an exclusive basis within California, Oregon, Washington and Alaska, as well as sections of Nevada, Arizona and Idaho.WSD will operate as a wholly owned subsidiary of EVI under its current name, from its present locations, led by its existing management team and employees – with the added benefit of EVI’s support and resources to assist in the execution of its growth plans.With the closing, WSD President Dennis Mack will be named a director and executive officer of EVI. WSD Executive Vice President Tom Marks also will be named an executive officer.“We are thrilled to welcome Dennis Mack, Tom Marks and all of the employees of Western State Design to the EVI family,” noted Henry M. Nahmad, EVI chairman and CEO. “We recognize that Western State Design’s success is based on a thriving entrepreneurial culture, strong customer relationships, dedicated employees and a commitment to exceptional service. For those reasons and others, we believe that the addition of Western State Design to the EVI family will benefit EVI and its customers, employees and stockholders.”“On behalf of the entire team at Western State Design, we are very pleased to be joining the EVI family of commercial laundry businesses,” said Mack and Marks, in a joint statement. “EVI’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.”