EnviroStar, Inc. to Acquire Martin-Ray Laundry Systems, Inc.

MIAMI–(BUSINESS WIRE)–EnviroStar, Inc. (NYSE MKT: EVI) today announced that it has executed a
definitive asset purchase agreement to acquire substantially all the
assets of Martin-Ray Laundry Systems, Inc. The purchase price to be paid
is $4.0 million of which $2.0 million will be paid in cash and $2.0
million will be paid in EVI common stock.

Martin-Ray, a Denver, CO based distributor of commercial, industrial,
and vended laundry products and provider of laundry installation and
routine maintenance services, generated approximately $11.5 million in
revenue for the twelve-months ended March 31, 2017. Martin-Ray
distributes key brands, including Pellerin-Milnor, Chicago Dryer, and
Speed Queen, across some of the fastest growing markets in the United
States.

EVI said this acquisition will establish its presence in the Mountain
states and provides a business unit from which to execute on future
growth in the region. Martin-Ray serves over 1,500 customers in the
healthcare, hospitality, commercial, and vended laundry markets. Led by
Jim Hohnstein, Bill Mann, and Timm Mullen, Martin-Ray will operate as a
wholly owned subsidiary of EVI under its current name, from its present
locations, with its existing employees, and with the added benefit of
operating under EVI’s entrepreneurial and growth focused culture.

Jim Hohnstein, Bill Mann, and Timm Mullen jointly said: “We are excited
about joining the EVI family! We have ambitious growth initiatives for
our business and we are confident that with EVI’s capital and
relationship resources, Martin-Ray will achieve its growth objectives
and be a contributor to EVI’s success.”

Henry M. Nahmad, EVI’s Chairman and CEO added: “Our acquisition pipeline
remains strong and our expected addition of Martin-Ray represents
another step towards achieving EVI’s long-term growth strategy to
buy-and-build the largest commercial laundry distribution and service
company in North America.”

Closing of the transaction is subject to customary closing conditions
and the parties intend to close the transaction within the next thirty
days. The transaction is expected to be accretive to EVI’s earnings.

Safe Harbor Statement

Except for the historical matters contained herein, statements in this
press release are forward-looking and are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are subject to a number of known and
unknown risks and uncertainties that may cause actual results, trends,
performance or achievements of EVI, or industry trends and results, to
differ from the future results, trends, performance or achievements
expressed or implied by such forward-looking statements. These risks and
uncertainties include, among others, those relating to the proposed
acquisition described in this press release, including that the
acquisition may not be consummated when expected, in accordance with the
contemplated terms, or at all, the potential benefits of the
acquisition, if consummated, may not be realized to the extent
anticipated or at all, integration risks, and the risks related to EVI’s
and Martin-Ray’s plans, operations, results, financial condition, growth
strategy and prospects. In addition, reference is made to other
economic, competitive, governmental, technological and other risks and
factors discussed in EVI’s filings with the Securities and Exchange
Commission, including, without limitation, EVI’s Annual Report on Form
10-K for the fiscal year ended June 30, 2016. Many of these risks and
factors are beyond EVI’s control. In addition, past performance and
perceived trends may not be indicative of future results. EVI cautions
that the foregoing factors are not exclusive. The reader should not
place undue reliance on any forward-looking statement, which speaks only
as of the date made. EVI’s does not undertake to, and specifically
disclaims any obligation to, update or supplement any forward-looking
statement, whether as a result of changes in circumstances, new
information, subsequent events or otherwise, except as may be required
by law.

Contacts

EnviroStar, Inc.
Henry M. Nahmad, 305-754-8676
Rob Lazar,
305-754-8676