Posted at 12:22 p.m., Tuesday, December 11, 2007
Young Laundry owner lines up more financing
Advertiser Staff
U.S. Dry Cleaning Corp., a company that's trying to replicate the success of Young Laundry across the country, said it's closed on $3.5 million of financing.The Palm Springs, California-based company said the initial closing of its senior secured convertible note financing is part of a $20 million private placement for the acquisition of five dry cleaning chains. The company was formed in 2005 and 17 months ago merged with Young Laundry, which was founded in Honolulu in 1902 as the in-house laundry for the Alexander Young Hotel in downtown Honolulu.
The company said the funds will allow it to expand beyond current markets in Hawai'i and Southern California in its drive to acquire and consolidate independent chains. To date it's bought three chains in Hawai'i and California.
Last month it announced an agreement to buy Honolulu-based Caesars Cleaners to add $2.26 million of revenue to U.S. Dry Cleaning's annual sales. Caesars operates four stores and a central operating plant in Honolulu.
U.S. Dry Cleaning said it was paying $2.15 million in cash, convertible and assumed debt and shares of common stock for the parent company of Caesars Cleaners.
Currently U.S. Dry Cleaning is pursuing acquisitions of dry cleaning chains, two of which have signed purchase agreements. Three have signed memorandums of understanding.
