CAMBRIDGE, MA -- Mac-Gray Adds Texas to its Maytag Distribution Network Mac-Gray Corporation (NYSE:TUC), a leading distributor of commercial laundry products to the retail laundromat and other institutional markets, and Maytag Corporation's largest commercial laundry equipment customer, today announced an agreement with Maytag, granting Mac-Gray distribution rights in Texas for its entire line of commercial laundry equipment. The agreement, which includes the five largest markets in Texas: Dallas, Fort Worth, Houston, Austin and San Antonio, strengthens Mac-Gray's position as Maytag's largest commercial laundry distributor in the United States, with similar agreements covering markets in 15 additional states.
"Texas is a strategic market for Maytag Commercial Laundry products, and we intend to increase our share of commercial product sales there," said Craig Kirchner, general manager of the commercial division of Maytag Corporation. "Mac-Gray was the logical choice for us because of their obvious commitment to growth, the expertise of their management, the strength of their sales and marketing groups, their customer service orientation and their considerable resources in the Texas market."
In January 2005, Mac-Gray acquired the entire laundry facilities management business of Web Service Company located in 13 states across the western and southern U.S., including three branch operations facilities in Texas.
"Part of our strategy is to support our facilities management business with parallel distribution to the laundromat and other institutional markets within our geographic reach. These two businesses complement each other well and increase efficiencies," said Stewart MacDonald, chairman and CEO of Mac- Gray. "I am also enthusiastic about expanding our relationship with Maytag. Mac-Gray is Maytag's oldest customer, since 1927. Product Sales currently represent 17% of Mac-Gray's total revenue, and commercial laundry distribution is a business that we want to grow. The western markets we entered as a result of our January acquisition represent a good growth opportunity for Mac- Gray."
About Mac-Gray Corporation
Founded in 1927, Mac-Gray derives its revenue principally through the contracting of debit-card- and coin-operated laundry facilities in multi-unit housing facilities such as apartment buildings, college and university residence halls, condominiums and public housing complexes. Mac-Gray contracts its laundry rooms under long-term leases. These leases typically grant Mac-Gray exclusive contract rights to laundry rooms on the lessor's premises for a fixed term, which is generally seven to 10 years, in exchange for a negotiated portion of the revenue collected. Mac-Gray manages approximately 63,000 laundry rooms located in 40 states and the District of Columbia.
Mac-Gray also sells, services and leases commercial laundry equipment to commercial laundromats and institutions through its product sales division. This division also includes Mac-Gray's MicroFridge(R) business, where Mac-Gray sells its proprietary MicroFridge(R) line of products, which are combination refrigerators/freezers/microwave ovens utilizing patented Safe Plug(TM) circuitry. The products are marketed throughout the United States to colleges, the federal government for military housing, hotels and motels, and assisted living facilities. MicroFridge(R) also has entered into agreements with Maytag Corporation to market Maytag's Magic Chef(R), Amana(R) and Maytag(R) lines of home appliances under its MaytagDirect(TM) program throughout the United States. MicroFridge(R) and Maytag(R) products bear the ENERGY STAR(R) designation. To learn more about Mac-Gray, visit the Company's website at http://www.macgray.com/.
Intelligent Laundry Solutions(TM), Intelligent Laundry Systems(TM), LaundryView(TM), PrecisionWash(TM) and MaytagDirect(TM) are trademarks of Mac- Gray Corporation. MicroFridge(R) is a registered trademark of Mac-Gray Corporation. All other product names, service marks and trademarks mentioned herein are trademarks of their respective owners.
Safe Harbor Statement
This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to plans regarding the offering and the use of the net proceeds. These statements are based on management's current expectations and involve significant risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, market factors and general economic conditions, as well as those risks set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2004 under "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in other reports subsequently filed with the Securities and Exchange Commission.
Source: Mac-Gray Corporation
|
| Notes:
CONTACT: Neil F. MacLellan, Chief Operating Officer of Mac-Gray
Corporation, +1-617-492-4040, nmaclellan@macgray.com; or Jim Buckley,
Executive Vice President of Sharon Merrill Associates, Inc., +1-617-542-5300,
jbuckley@investorrelations.com
Web site: http://www.macgray.com/
About This Release
If you have any questions regarding information in this press release, please contact the organization listed in the press release. Issuers of press releases and not TCI are solely responsible for the accuracy of the content.
 | |
| Advertisement |
|
