EVI, headquartered in Miami, has purchased all of the outstanding shares of PAC’s common stock as part of the agreement – $6.4 million was paid in cash, $6.25 million in EVI common stock and $0.2 million in an assumed subordinated note.
PAC is a distributor of commercial, industrial and vended laundry products, as well as a provider of related installation and maintenance services to the new and replacement markets of the laundry industry.
For the 12 months ended December 31, 2018, PAC generated approximately $22 million in revenue from the sale of equipment, parts, supplies, and related installation and maintenance services, according to EVI Industries.
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 toward accomplishing our collective long-term goals,” PAC President Frank Costabile stated.
The acquisition of PAC is EVI’s first in the Northeast, where the company expects to continue 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.
“We welcome all of the valued employees and owners of PAC Industries to the EVI family,” noted 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.