PLAINVIEW, N.Y. — Coinmach Service Corp., a supplier of coin-operated laundry machines and services, has agreed to be taken private by an affiliate of Australian investment and advisory firm Babcock & Brown for about $713 million in cash. The total value of the deal is $1.33 billion, including assumed debt.
Coinmach’s board approved the deal and recommended shareholders vote in favor of the acquisition. Shareholders will receive $13.55 per share in cash for each share held. There is no financing condition for the transaction, and certain members of Coinmach management will remain with the company after the deal is complete. The acquisition is expected to close in the third quarter, subject to customary closing conditions.
Coinmach, the Plainview, N.Y.-based company, employs about 1,950 workers and reported fiscal 2006 revenue of $543.5 million. It leases laundry rooms from building owners, property management companies, universities and other multi-family housing properties, and installs and services laundry equipment and collects revenue generated from the laundry machines. The company rents laundry machines and other household appliances to owners and managers of multi-family properties, individuals and corporations. Coinmach also operates a laundry equipment distribution business.