Bullish indicating open at $55-$60, IPO prices at $37
EVI Industries, Inc. (NYSE American:EVI), a personal services company with an overall GOOD financial health rating according to InvestingPro, has amended its credit agreement with Bank of America, N.A., enhancing its financial flexibility, according to a recent SEC filing. The amendment, effective as of Tuesday, increases the company’s revolving credit commitments from $100 million to $150 million and the accordion feature from $40 million to $50 million. The maturity date of the credit facility has also been extended from May 6, 2027, to March 26, 2030. This move aligns with the company’s strong liquidity position, as InvestingPro data shows a healthy current ratio of 1.58 and a conservative debt-to-equity ratio of 0.27.
The Miami-based company, operating under the Delaware jurisdiction, has also brought two of its subsidiaries on board as guarantors under the credit agreement. This move could potentially strengthen the creditworthiness of the overall corporate family.
EVI Industries, formerly known as EnviroStar, Inc., and before that as DRYCLEAN USA Inc., has its business address at 4500 Biscayne Boulevard, Suite 340, Miami, FL, and is incorporated in Delaware.
The increase in credit commitments and the extension of the maturity date provide EVI Industries with a larger financial cushion and more time to meet its obligations or finance its operations and potential expansions. With annual revenue of $360.46 million and EBITDA of $19.53 million in the last twelve months, the additional guarantors may offer lenders extra security, potentially resulting in more favorable borrowing terms for the company. Unlock more financial insights and 12+ additional ProTips with InvestingPro.
The details of the amendment are outlined in an exhibit attached to the SEC filing, which specifies the terms and conditions of the agreement. This information is based on the company’s latest 8-K filing with the SEC.
In other recent news, EVI Industries, Inc. has announced its largest acquisition to date with the definitive purchase of Girbau North America, Inc. This acquisition marks a significant milestone in EVI’s decade-long growth strategy, which has already resulted in a 12-fold increase and 29 acquisitions. Girbau North America, a master distributor of Girbau S.A. products, reported $75 million in revenue with a 9.5% operating income for the year ending December 31, 2024. The acquisition is valued at approximately $43 million in cash and will be funded through EVI’s revolving credit facility. EVI has also secured a commitment letter with Bank of America and Wells Fargo (NYSE:WFC) to amend its Credit Agreement, increasing its revolving commitments by $50 million. The acquisition is expected to be immediately accretive to EVI’s earnings, aligning with the company’s focus on industry consolidation and long-term value creation. Girbau North America will retain its brand and continue operations from its current locations. EVI’s strategic move is anticipated to enhance its distribution network and service capabilities significantly.
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