Mac-Gray Corporation Board Unanimously Rejects Coinmach Offer to Acquire the Company |
Board Views Offer as Not in Best Interest of Shareholders
WALTHAM, Mass., Dec. 5 /PRNewswire-FirstCall/ -- Mac-Gray Corporation
(NYSE: TUC), the nation's premier provider of laundry facilities management
services and energy-efficient MicroFridge(R) appliances to multi-unit
housing locations, today confirmed that its Board of Directors had
unanimously rejected an unsolicited written offer from Coinmach Services
Corp. (Amex: DRY) to acquire Mac-Gray for between $13.00 and $13.75 per
share. Coinmach announced and published the rejection letter on Monday,
December 4th.
"After careful analysis and consideration, the Board determined that
Coinmach's offer was grossly inadequate and deeply undervalued Mac-Gray,"
said Stewart G. MacDonald, Mac-Gray's chairman and chief executive officer.
"We believe the Coinmach proposal failed to recognize Mac-Gray's dramatic
growth over the past two years, as well as our future prospects, our loyal
customer base, and the enormous goodwill we have achieved in our national
footprint with our Mac-Gray, Web and MicroFridge brands.
"The Board also viewed the unsolicited Coinmach offer as opportunistic
based on Mac-Gray's 52-week trading history and the fact that we have yet
to fully unlock the value of our recent acquisitions. The combination of
these recent acquisitions, two expected near-term acquisitions, and
additional acquisition opportunities, ongoing internal growth initiatives
and our industry-leading suite of technology products, such as
LaundryView(TM), has positioned us to generate strong, profitable growth.
Mac-Gray's Board and executive management remain committed to building
shareholder value," MacDonald concluded.
About Mac-Gray Corporation
Founded in 1927, Mac-Gray derives its revenue principally through the
contracting of card- and coin-operated laundry facilities in multiple
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 serves
approximately 63,000 multi-housing 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 the Company'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 regarding the Company's current expectation regarding its growth
prospects. The Company intends such forward-looking statements to be
covered by the Safe Harbor provisions for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995, and is
including this statement for purposes of complying with these Safe Harbor
provisions. Forward-looking statements, which are based on certain
assumptions and describe future plans, strategies and expectations of the
Company, may be identified by use of the words "believe," "expect,"
"intend," "anticipate," "estimate," "project," or similar expressions.
Investors should not rely on forward-looking statements because they are
subject to a variety of risks, uncertainties and other factors that could
cause actual results to differ materially from such forward-looking
statements. Certain factors which could cause actual results to differ
materially from the forward-looking statements include, but are not limited
to, the Company's ability to successfully integrate acquired assets and
operations, and service the increased debt incurred to finance the
acquisition, as well as the risks that the Company will incur unanticipated
costs related to the acquired operations or not realize expected revenues,
synergies and cost savings, and those risks set forth in the Company's
Annual Report on Form 10-K for the year ended December 31, 2005 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.
Contacts:
Michael J. Shea Jim Buckley
Chief Financial Officer Executive Vice President
Mac-Gray Corporation Sharon Merrill Associates, Inc.
781-487-7610 617-542-5300
Email: mshea@macgray.com Email: jbuckley@investorrelations.com
SOURCE Mac-Gray Corporation
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CONTACT:
Michael J. Shea, Chief Financial Officer of
Mac-Gray Corporation, +1-781-487-7610, mshea@macgray.com; or Jim
Buckley, Executive Vice President of Sharon Merrill Associates,
Inc., for Mac-Gray Corporation, +1-617-542-5300,
jbuckley@investorrelations.com
