PALM SPRINGS, Calif. — U.S. Dry Cleaning Corp. announced yesterday it has signed an agreement to acquire the No. 1 drycleaning chain in California’s Central Valley. With 18 stores in and around Fresno, Calif., and two more in Arizona, the chain will add more than $6.5 million to U.S. Dry Cleaning’s existing $10 million in annual sales.
Under the agreement, U.S. Dry Cleaning will acquire the business for $6.1 million, half in shares of the publicly traded consolidator’s common stock. The transaction includes four companies owned and operated for two generations by Fred Jones, his son Tom and daughter Melinda Brooke. The companies expect to complete the acquisition by the end of October, and Tom Jones will continue with the company for three years to assist in the integration of the operation.
“My family and I are pleased to join U.S. Dry Cleaning in creating the first national chain of premier drycleaning businesses in the United States,” he says. “With the added corporate resources provided by U.S. Dry Cleaning Corp., our company can take full advantage of the rapid residential and business expansion in this region, and continue to be No. 1 in a large and growing market.”
Operating under One Hour Martinizing and Regency Cleaners brands, the chain offers a large base of loyal customers, U.S. Dry Cleaning says. The operation uses GreenEarth’s silicon-based solvent process.
“We are extremely pleased and proud to join forces with this strong, profitable company,” says Robert Y. Lee, CEO of U.S. Dry Cleaning. “This is a significant financial and strategic addition to our corporation. The Jones family has been a very astute and responsible steward of their business.”