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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
JANUARY 8, 1997
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Date of Report (Date of earliest event reported)
COINMACH CORPORATION
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(Exact name of Registrant as specified in its character)
DELAWARE 333-0062 53-0188589
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) number)
55 LUMBER ROAD, ROSLYN, NEW YORK 11576
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(Address of Principal Executive Offices)
(516) 484-2300
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(Registrant's telephone number, including area code)
Exhibit Index is located on Page 4
Page 1 of 6
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Item 5. Other Events.
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On January 8, 1997, pursuant to the terms and conditions of a Stock
Purchase Agreement, dated as of November 25, 1996 (the "Agreement"), Coinmach
Corporation (the "Company"), a wholly-owned subsidiary of Coinmach Laundry
Corporation ("CLC"), completed the acquisition of 100% of the outstanding voting
securities of each of KWL, Inc. ("KWL"), a Nevada corporation, and Kwik-Wash
Laundries, Inc. ("Kwik Wash"), a Nevada corporation, for $125 million in cash
and a $15 million promissory note issued by CLC. KWL and Kwik Wash are the sole
partners of Kwik Wash Laundries, L.P. (the "Partnership"), a Texas limited
partnership. The Partnership, based in Dallas, Texas, provides coin-operated
laundry equipment services to multi-family dwellings in Texas, Louisiana,
Arkansas and Oklahoma and operates approximately 150 laundromat stores
throughout Texas.
Simultaneously with the acquisition, KWL, Kwik Wash and the Partnership
merged with and into the Company.
Concurrently with the acquisition, the Company also entered into a new
senior financing arrangement providing up to $200 million with Bankers Trust
Company, First Union National Bank of North Carolina and Lehman Brothers, Inc.
The Company's new credit facilities, which were used in part to fund the
acquisition and will provide financing to support the Company's acquisition
strategy, replaced the Company's existing credit facility.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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c. Exhibits.
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The following exhibits are filed as part of this report.
99.1 Press release, dated January 9, 1997
99.2 Press release, dated January 9, 1997
Page 2 of 6
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Dated: January 9, 1997
COINMACH CORPORATION
/s/ ROBERT M. DOYLE
By: ______________________________________
Robert M. Doyle
Senior Vice President
Page 3 of 6
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EXHIBIT INDEX
EXHIBIT PAGE
NUMBER DOCUMENT NUMBER
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99.1 Press Release, dated January 9, 1997 5
99.2 Press Release, dated January 9, 1997 6
Page 4 of 6
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EXHIBIT 99.1
CONTACT:
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Mr. Robert M. Doyle, Senior Vice President and
Chief Financial Officer (516) 484-2300
Coinmach Laundry Corporation
FOR IMMEDIATE RELEASE:
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COINMACH CORPORATION ANNOUNCES
SENIOR BANK FINANCING
NEW YORK, NEW YORK, January 9, 1997 - Coinmach Corporation, a wholly-owned
subsidiary of Coinmach Laundry Corporation (NASDAQ: WDRY), has entered into a
new senior financing arrangement with Bankers Trust Company, First Union
National Bank of North Carolina, and Lehman Brothers, Inc., providing up to $200
million to support Coinmach's acquisition strategy. The senior financing
consists of term loans of $130 million and a revolving credit facility of $70
million. The term loans provide the financing for Coinmach's acquisition of
Kwik Wash Laundries, L.P., a leading provider of coin-operated laundry equipment
services to multi-family properties in Texas, Louisiana, Arkansas and Oklahoma.
The revolver will remain available for future growth.
Stephen R. Kerrigan, Chairman and CEO, said, "This new facility, arranged at
attractive terms, will assist Coinmach in pursuing its stated goal of industry
consolidation. The availability and pricing of this facility reflects
Coinmach's performance as an industry consolidator over the past year as well as
its successful public debt and equity offerings."
Coinmach Laundry Corporation is the nation's leading provider of coin-operated
laundry equipment services for multi-family properties. Coinmach owns and
operates approximately 325,000 coin-operated washers and dryers on routes in
over 30,000 locations in 30 states and the District of Columbia. Coinmach is
also a distributor of laundromat equipment and turnkey laundromats.
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EXHIBIT 99.2
CONTACT:
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Mr. Robert M. Doyle, Senior Vice President and
Chief Financial Officer (516) 484-2300
Coinmach Laundry Corporation
FOR IMMEDIATE RELEASE:
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COINMACH LAUNDRY CORPORATION ANNOUNCES
ACQUISITION OF KWIK WASH LAUNDRIES
NEW YORK, NEW YORK, January 9, 1997 - Coinmach Laundry Corporation (NASDAQ:
WDRY) is pleased to announce that it has successfully completed the acquisition
of Kwik Wash Laundries, L.P. for $125 million in cash and a $15 million
promissory note issued by Coinmach Laundry Corporation.
Kwik Wash provides coin-operated laundry equipment services to multi-family
properties located primarily in Texas, Louisiana, Arkansas and Oklahoma. It
also operates approximately 150 laundromats in Texas. For the twelve months
ended September 30, 1996, Kwik Wash had revenues of approximately $65 million
and EBITDA of approximately $23 million.
Stephen R. Kerrigan, Chairman and CEO, said, "Kwik Wash represents our first
significant acquisition since our initial public offering and firmly establishes
us as the nation's leading provider of coin operated laundry equipment services.
The Kwik Wash acquisition significantly increases our penetration in the south
central region of the U.S. We expect to integrate Kwik Wash into our operations
over the next six months and achieve significant targeted cost savings. The
combination of Kwik Wash and Coinmach for the twelve months ended September 27,
1996, assuming no cost savings, results in combined revenues of $248 million and
EBITDA of $78 million."
The Kwik Wash acquisition increases Coinmach's installed base of machines to
approximately 325,000, establishing Coinmach as the nation's leading provider of
coin-operated laundry equipment services to multi-family properties, servicing
over 30,000 locations in 30 states and the District of Columbia. The
transaction was financed with cash and borrowings under Coinmach's new credit
facilities, which provide financing to support its acquisition strategy.
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