Mac-Gray buys Automatic Laundry for $116 million
Laundry management company Mac-Gray Corp. said today that it bought Automatic Laundry Co. Ltd. for $116 million.
Mac-Gray of Waltham paid $106 million in cash and $10 million in unsecured notes for Automatic, which is based in Denver. Mac-Gray said it estimates that Automatic is the fourth-largest laundry-facilities contractor in the nation.
Automatic had sales of about $65 million in 2007, while Mac-Gray had sales of $295.9 million.
The deal will allow Mac-Gray greater access to key markets, including Denver and Phoenix, the company said in a statement.
Mac-Gray shares was up 17 cents to $11.67 in afternoon trading on the New York Stock Exchange. (AP)