PALM SPRINGS, Calif. — Industry consolidator U.S. Dry Cleaning Corp. (USDC) announced last week that it has signed an acquisition agreement with Honolulu, Hawaii-based Robinson Corp., operator of the prominent Caesars Cleaners chain.
Under the agreement, U.S. Dry Cleaning will acquire Robinson Corp. for $2.15 million in cash, debt and common stock. The transaction will be completed before the end of 2007, following customary closing conditions.
When concluded, the acquisition will add about $2.25 million in annual revenues to USDC’s current $10 million. Expecting 40% growth for the Hawaiian chain and additional revenues from last month’s acquisition of a California chain, the company expects this year’s annualized revenues to total more than $18.7 million.
“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,” says Michael E. Drace, chief operating officer and president of USDC. “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.”
Caesars Cleaners has been owned and operated by Thurston John (“Jack”) Robinson since 1972. Robinson represents the third generation of family ownership, and is retiring after 35 years in the business. Caesars manager Theresa Paulette will continue with the operation.
“I'm proud to have grown my company to the $2 million business it is today,” Robinson says. “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.”
U.S. Drycleaning also announced four additional acquisitions in California, but did not disclose the terms.