EVI Industries Expands Market Reach with Girbau North America Acquisition

EVI Industries, Inc. (NYSE American: EVI), a leading distributor of commercial, industrial, and vended laundry and dry cleaning equipment, has announced its largest acquisition to date: the acquisition of Girbau North America (GNA) for approximately $43 million in cash. This strategic move aligns with EVI's long-term growth strategy and is expected to significantly enhance the company's market reach and distribution network.

GNA, founded in 1995 as a master distributor of Girbau products, generated $75 million in revenue with 9.5% operating income for the twelve months ended December 31, 2024, and achieved a five-year revenue CAGR of 11%. The acquisition is expected to contribute approximately $50 million in net revenue and $7.0 million in operating income on a pro forma basis, further bolstering EVI's financial scale.

To fund the acquisition, EVI will utilize its revolving credit facility and has secured a commitment to increase its credit facility by $50 million to $150 million, with an additional $50 million accordion feature. The transaction is expected to be immediately accretive to EVI's earnings and will expand the company's distribution network while enhancing its functional support capabilities.



The acquisition of GNA represents a significant milestone in EVI's decade-long growth journey. At $43 million, this cash transaction values GNA at approximately 6.1x operating income, a reasonable multiple considering GNA's 11% five-year revenue CAGR. The financial profile of this acquisition is compelling, with GNA generating $75 million in revenue with 9.5% operating margins in 2024. The expected net revenue contribution of $50 million and operating income of $7 million will meaningfully expand EVI's financial scale.

EVI's acquisition of GNA is a testament to the company's commitment to growth and expansion in the North American commercial laundry market. By integrating GNA's established leadership and preserving its brand identity, EVI minimizes integration risks while capturing operational synergies. This strategic acquisition is expected to accelerate EVI's impressive financial trajectory, which has delivered a 31% revenue CAGR, 19% net income CAGR, and 28% adjusted EBITDA CAGR since 2016. The immediately accretive nature of the deal suggests potential for enhanced shareholder value, particularly with management's significant 60% ownership stake aligning leadership incentives with shareholder interests.

In conclusion, EVI Industries' acquisition of Girbau North America is a strategic move that strengthens the company's position as North America's leading commercial laundry distributor. By acquiring GNA, EVI gains three strategic advantages: enhanced distribution network and market reach through GNA's extensive network of independent distributors, deeper relationship with Girbau, a globally recognized manufacturer, securing long-term distribution rights, and expanded functional capabilities in strategic sourcing, logistics, marketing, and technology development. This acquisition is expected to be immediately accretive to EVI's earnings and will significantly enhance the company's market reach and distribution network.