EVI marks a decade with its largest acquisition

MIAMI - EVI Industries, Inc. (NYSE American: EVI), a prominent distributor of commercial laundry products and provider of maintenance services in North America, has announced the definitive acquisition of Girbau North America, Inc. (GNA), a key player in the laundry industry. The acquisition, which is expected to be the largest in EVI’s history, aligns with the company’s decade-long, buy-and-build growth strategy. According to InvestingPro data, EVI currently generates annual revenue of $360.46 million and maintains a healthy current ratio of 1.58, indicating strong liquidity to support its expansion plans.

The Miami-based EVI Industries has seen substantial growth since its strategy implementation, boasting a 12-fold increase and 29 acquisitions. The company’s latest move to acquire GNA, a master distributor of Spain’s Girbau S.A. products in North America, is set to further expand EVI’s distribution network and enhance its service capabilities. GNA, under the leadership of President Mike Floyd, has reported a five-year compounded annual growth rate in revenue of 11%, with $75 million in revenue and 9.5% operating income for the year ended December 31, 2024. This acquisition complements EVI’s own impressive five-year revenue CAGR of 9%, as reported by InvestingPro, which rates the company’s overall financial health as GOOD with a score of 2.54.

Henry Nahmad, EVI’s Chairman and CEO, expressed enthusiasm for the growth opportunities presented by the acquisition, which he believes will accelerate the company’s strategy to develop a national network of high-performing commercial laundry businesses. He also highlighted the long-term strategic alignment with manufacturing partners as a key driver of EVI’s success.

The transaction, valued at approximately $43 million in cash, will be funded through EVI’s revolving credit facility. In conjunction with the agreement, EVI has entered into a commitment letter with Bank of America and Wells Fargo (NYSE:WFC) to amend its Credit Agreement, increasing the revolving commitments by $50 million to a total of $150 million, with an option to further increase the facility by $10 million to $200 million.

GNA will retain its brand and continue operations from its current locations, maintaining its commitment to distributor customers and business partners. On a pro forma basis, GNA would have contributed an estimated $50 million in net revenue and approximately $7.0 million in operating income.

The acquisition is anticipated to be immediately accretive to EVI’s earnings, reflecting the company’s focus on long-term value creation through industry consolidation, organic growth, and technological modernization. As EVI celebrates its ten-year anniversary with a ceremonial bell ringing at the New York Stock Exchange today, the company upholds its core principles, including long-term investment, financial discipline, respect for entrepreneurs, and a culture of continuous improvement.

This news is based on a press release statement issued by EVI Industries, Inc. InvestingPro analysis reveals two key insights about EVI: the company has been profitable over the last twelve months and has delivered high returns over the last decade. Subscribers can access additional ProTips and detailed financial metrics to better understand EVI’s investment potential.

In other recent news, EVI Industries has expanded its equity incentive plan following stockholder approval. The amendment to the 2015 Equity Incentive Plan increases the number of shares authorized for issuance from 3,000,000 to 3,500,000. This change was approved during the Annual Meeting of Stockholders, as disclosed in a recent SEC filing. The amendment also introduces an automatic acceleration of vesting for all outstanding awards in the event of a Change in Control of the company, with certain exceptions. Additionally, stockholders voted to re-elect six directors to the company’s board, ensuring continuity in leadership. The directors re-elected are Henry M. Nahmad, Dennis Mack, David Blyer, Glen Kruger, Timothy P. LaMacchia, and Hal M. Lucas. These updates reflect EVI Industries’ strategic efforts to enhance its ability to attract and retain talent in a competitive industry. The detailed results of the stockholder votes were made available in the filing, providing transparency regarding the level of support for each director nominee and the equity incentive plan amendment.

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