EVI Industries, Inc. (NYSE:EVI) announced today that it executed a definitive merger agreement to acquire Barrington, New Hampshire based Yankee Equipment Systems, Inc., a distributor of commercial laundry products and a provider of related technical installation and maintenance services.
Yankee Equipment Systems is led by Peter Limoncelli, a young, well-respected, and dynamic leader and entrepreneur that together with a team of 56 skilled laundry professionals, have consistently increased Yankee's revenue, profitability, and market share in the New England region of the northeastern United States. This addition to the EVI family reflects EVI's continued leadership role in the transformation of the North American commercial laundry industry and adds approximately $31 million in revenue that is well distributed over 2,200 industrial, on-premise, vended, and multi-family laundry customers.
Henry M. Nahmad, EVI's Chairman and Chief Executive Officer, commented: "Yankee Equipment Systems has a long and magnificent legacy and we are proud to become part of their family. Consistent with our operating model, Yankee Equipment Systems will continue to be led by Peter Limoncelli and will operate under its current name, from its present location, and with its existing team to provide its customers, employees, and vendor partners business continuity. Their reputation and success, which are built on a tradition of providing exceptional laundry solutions backed by great service, have earned them strong customer relationships that we intend to help them build on."
Expansion and Growth in the Northeast Region
This acquisition complements other EVI acquisitions completed in 2019, including the purchase of PAC Industries and Professional Laundry Systems. In connection with this growth and with EVI's optimization plan, Mr. Limoncelli will also be named the President of EVI's Northeast Operations, which will consist of the operations of Yankee Equipment Systems, PAC Industries, and Professional Laundry Systems and include a combined 120 commercial laundry professionals serving customers throughout the region.
Mr. Nahmad commented: "EVI builds density in markets to improve customer service and to provide vendor partners with growth opportunities. Yankee Equipment Systems significantly expands our footprint in the Northeast and positions us to continue investing in this highly fragmented region."
The consideration to be paid by EVI in connection with this acquisition is $13.5 million, which consistent with EVI's historical transactions, will be paid in a combination of cash and EVI common stock. The transaction is expected to close upon the satisfaction of closing conditions.