U.S. Dry Cleaning Inc. (fka UDRYQ)

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US Dry Cleaning buys four-store chain in Hawaii
http://www.natclo.com/0712/newsmakers.htm


U.S. Dry Cleaning Corp. has signed an agreement and plan of merger with Robinson Corp., doing business as Caesars Cleaners, a Honolulu, HI, drycleaning business that has four stores and a central operating plant.
Under the agreement, U.S. Dry Cleaning would acquire Robinson Corp. for $2.1 million, which is to be paid in cash, convertible and assumed debt, and shares of common stock of U.S. Dry Cleaning.
When concluded, the acquisition would add more than $2.2 million 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 percent.
Along with the previously announced acquisition of a central California drycleaning business with revenues of $6.5 million, this transaction is expected to bring U.S. Dry Cleaning's annualized revenue run rate to more than $18.7 million.
Caesars Cleaners, the brand name of Robinson Corp., has been owned and operated by Thurston John Robinson since 1972. Robinson followed in the footsteps of his father and grandfather, who had worked in the laundry and drycleaning 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.
“The acquisition will expand our market share in Hawaii, and is expected to increase revenues to more than $7.6 million, ” said Michael E. Drace, chief operating officer and president of U.S. Dry Cleaning, Inc. “The drycleaning 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, ” he added.
Drace said the company’s strategy is “to become the first national chain of premier drycleaning businesses."
U.S. Dry Cleaning is focused on acquiring profitable businesses that hold leading shares in their individual markets. Each acquisition target is expected to be self-sufficient and field management is expected to remain in place to ease the assimilation.
Over the last year and a half, U.S. Dry Cleaning has completed acquisitions with combined annual revenues of more than $9 million. The company plans to rapidly acquire profitable, positive cash flow operations, identifying acquisition candidates by revenue stream, location, market share, quality of work, productivity and customer loyalty.
In July the company completed a $6.1 million initial public offering and is trading on the Over-the-Counter Bulletin Board under the symbol UDRY.OB.