EVI Industries Closes Major Laundry Distribution Acquisition, Marking Significant Expansion in North American Market

The completion of EVI Industries’ acquisition of Girbau North America represents a pivotal moment for the commercial laundry sector. This deal, finalized on April 1, 2025, substantially strengthens EVI’s footprint across the fragmented North American market and signals aggressive consolidation in the industry.

Financial Impact and Performance Metrics

For the twelve-month period ending December 31, 2024, Girbau North America demonstrated solid operational fundamentals. The distributor generated $75 million in revenue with approximately 9.5% operating income margins and achieved an impressive 11% compounded annual growth rate over the past five years.

On a pro forma basis, integrating these results into EVI’s consolidated financials reveals the deal’s strategic value. The combined entity would show approximately $50 million in incremental net revenue and roughly $7 million in additional operating income for the same period—representing a 14% revenue boost and a 54% jump in operating income. These figures underscore why EVI’s leadership views this transaction as transformational rather than merely accretive.

Strengthening Market Position and Operational Footprint

The addition of Girbau North America provides EVI with several competitive advantages. The acquired distributor brings an experienced management team averaging 25 years of industry tenure, a crucial asset for navigating the complex commercial laundry landscape. This infusion of talent extends across multiple market segments: industrial operations, on-premise facilities, vended laundry systems, and multifamily properties.

Through this platform, EVI gains access to Girbau North America’s established distributor relationships while pursuing opportunities to broaden product offerings. The strategy includes adding new OEM representations and expanding the portfolio with complementary parts and supplies. Such moves position EVI to capture additional wallet share from existing customers while recruiting new ones.

The transaction aligns with EVI’s proven playbook. Since 2016, the company has executed thirty acquisitions, consistently maintaining the acquired business names, employee bases, and operational independence. This approach has yielded impressive results: 31% compounded annual revenue growth, 19% net income growth, and 28% adjusted EBITDA expansion over the past decade.

Financing and Balance Sheet Flexibility

EVI moved quickly to enhance its financial flexibility around the acquisition. On March 28, 2025, the company amended its credit agreement to extend the maturity date from May 2027 to March 2030. The revision increased revolving commitments by $50 million to reach $150 million and expanded the accordion feature by $10 million to $50 million, creating $200 million in total borrowing capacity.

Bank of America and Wells Fargo remain lenders under the amended facility, with Bank of America serving as the lead arranger. The preservation of substantially unchanged terms demonstrates EVI’s strong market standing and credit profile.

Organizational Philosophy and Long-Term Strategy

Henry M. Nahmad, EVI’s Chairman and CEO, emphasized the company’s commitment to preserving acquired businesses’ identities and cultures. Having completed thirty prior acquisitions, EVI has built a track record of honoring founder families and their management teams. The Girbau North America operation will continue functioning on a decentralized basis under its existing leadership, empowered to make decisions tailored to distributor customer needs.

This decentralized approach reflects EVI’s broader organizational philosophy. The company maintains founder-led management with Nahmad and other executives who collectively own more than 60% of the enterprise. Many are founders of previously acquired businesses, creating alignment between long-term value creation and entrepreneurial incentives.

Market Leadership and Industry Consolidation

EVI positions itself as North America’s largest value-added distributor of commercial laundry products and related technical services. The company’s growth narrative since 2016 encompasses geographic expansion, increased sales and service personnel, broader OEM partnerships, and advanced operating technology implementation.

The Girbau North America acquisition accelerates EVI’s industry consolidation strategy. Given the fragmented nature of North American commercial laundry distribution, the combination of EVI’s established presence with Girbau North America’s distributor network creates competitive benefits that extend beyond simple revenue combination. Cross-selling opportunities, operational efficiency gains, and enhanced bargaining power with OEM suppliers should compound benefits over time.

Forward-Looking Considerations

Management expects Girbau North America will operate according to EVI’s established playbook: respecting entrepreneurial cultures, maintaining financial discipline, empowering local decision-making, and emphasizing long-term perspective over short-term optimization. The combination of EVI’s entrepreneurial infrastructure with Girbau North America’s seasoned leadership team should drive continued sales and profitability expansion.

The transaction demonstrates EVI’s commitment to disciplined capital deployment and selective acquisition strategy within a highly fragmented industry. For stakeholders, the deal represents another chapter in the company’s systematic approach to consolidation and organic growth within the commercial laundry distribution sector.