Coinmach Laundry announces acquisitions of Reliable Holding and Appliance Warehouse.NEW YORK--(BUSINESS WIRE)--April 1, 1997--Coinmach Laundry Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :WDRY) is pleased to announce that it has recently signed a definitive agreement to acquire the stock of Reliable Holding Corp. for a cash purchase price of $44.0 million. Additionally, on March 14, 1997, Coinmach completed the acquisition of the assets of Atlanta Washer & Dryer Leasing, Inc. for a purchase price of $6.3 million in cash and promissory notes promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. aggregating $1.2 million. The Reliable acquisition provides the company with a strong foothold into the California market and underscores its commitment to become a national company and to consolidate the industry. Reliable, headquartered in Glendale, Calif., is a leading provider of coin operated laundry equipment services in California. Reliable currently operates an installed base of approximately 49,000 machines in approximately 8,500 locations clustered around Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. and Tijuana, Mexico. For the twelve months ended Jan. 31, 1996, Reliable had revenues of approximately $32.7 million and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of approximately $8.5 million. The transaction will be financed with cash and borrowings under Coinmach's credit facility and is expected to be completed in early April, subject to certain approvals. Atlanta Washer & Dryer Leasing, Inc. (d/b/a Appliance Warehouse) is engaged in the leasing of laundry equipment and other household appliances to property owners or managers, corporate relocation companies and individuals. Appliance Warehouse is based in Atlanta, Georgia and also has operations in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. . The acquisition of Appliance Warehouse represents an expansion of Coinmach's core operations into the related machine rental market, creating valuable operating synergies for Coinmach while providing property owners with a comprehensive, one stop shopping approach to their laundry service requirements. The combination of Reliable, Appliance Warehouse and Coinmach (including the historical results from its recent acquisition of Kwik-Wash) for the twelve months ended Dec. 31, 1996, results in combined revenues of approximately $290.0 million and EBITDA of $90.0 million. Coinmach Laundry Corp. is the nation's leading provider of coin-operated laundry equipment services for multi-family properties. CONTACT: Coinmach Laundry Corporation Robert M. Doyle, 516/484-2300 |
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