U.S. Dry Cleaning Corporation Agrees to Acquire Honolulu Dry Cleaning Company, Adding an Expected $2,256,000 to Overall Revenue Run Rate and Increasing Hawaiian Revenue by an Expected 40%
Thursday October 25, 7:00 am ET
PALM SPRINGS, CA--(MARKET WIRE)--Oct 25, 2007 -- U.S. Dry Cleaning Corporation (OTC BB:UDRY.OB - News) ("U.S. Dry Cleaning"), the first mover in consolidating the nation's dry cleaning industry, announced today that it has signed an agreement and plan of merger with Robinson Corp. (doing business as Caesars Cleaners), a prominent dry cleaning business based in Honolulu comprising four stores and a central operating plant.
When concluded, the acquisition would add more than $2,256,000 to U.S. Dry Cleaning's existing $10 million annualized run rate and increase the expected revenue for the company's Hawaiian operations by 40%. Together with the pending acquisition of Central California's leading dry cleaning business, with revenues of $6.5 million (announced on September 11, 2007), this transaction is expected to bring U.S. Dry Cleaning's annualized revenue run rate to more than $18.7 million. Under the agreement and plan of merger, U.S. Dry Cleaning would acquire Robinson Corp. for $2,153,000, which is to be paid in cash, convertible and assumed debt, and shares of common stock of U.S. Dry Cleaning.
Caesars Cleaners, the brand name of Robinson Corp., has been owned and operated by Thurston John ("Jack") Robinson since 1972. Mr. Robinson followed in the footsteps of his father and grandfather, who had worked in the laundry and dry cleaning industry since 1930. He is retiring after 35 years of building his business. Theresa Paulette, who has been general manager for 18 years, will stay on to manage and expand the operation.
Michael E. Drace, COO and President of U.S. Dry Cleaning, Inc. and head of operations in Hawaii, said, "U.S. Dry Cleaning is extremely pleased to acquire Caesars Cleaners, a premier profitable company with a reputation for excellence throughout the Honolulu area for 35 years. The acquisition will expand our market share in Hawaii, and is expected to increase revenues to more than $7.6 million. The dry cleaning industry has been a stable market since its inception, and it is poised for growth in an era where personal service is valued at a premium."
Mr. Drace added, "Mr. Robinson has built a highly successful business over 35 years, and U.S. Dry Cleaning offers the next step for growth through the opportunities provided by a public company. We are delighted that Theresa Paulette has agreed to stay on to help expand the business and integrate the company into our strategy to become the first national chain of premier dry cleaning businesses."
Mr. Robinson said, "I'm proud to have grown my company to the $2 million business it is today. I am confident I am leaving it in good hands and that my employees will be well cared for. I will remain invested in the company and I look forward to its future success."
It is expected that the transaction will be completed before the end of 2007, following customary closing conditions.
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