A New York company will pay $ 524 million in cash to buy a Massachusetts laundry services firm that supplies coin or card operated washing machines and dryer. That's a lot of quarters.
CSC Service Works of Plainview, N.Y., offered a 42 percent premium over the estimated value of Mac-Gray Corp. of Waltham, which operates in 44 states and last year reported revenue of $ 322 million. CSC, a privately held company, will acquire all of the outstanding common stock of Mac-Gray for $ 21.25 per share.
Mac-Gray's stock closed at $ 21.14 Tuesday, up from $ 14.89, or nearly 42 percent from Monday. The Mac-Gray deal is expected to close in the first half of next year.
Officials at the companies did not respond to requests for comment. Scott Solomon at the Boston investor relations firm Sharon Merrill, which is representing Mac-Gray, declined to comment on the deal or whether Mac-Gray's headquarters and employees will remain in Waltham.
The company employs 163 people in Massachusetts, Solomon said.
In a statement, CSC chief executive Bob Doyle said, "Bringing our teams together to share each other's best practices will elevate both companies and enhance our customers' experience."
Founded in 1927, Mac-Gray has contracts with apartment buildings, college dormitories, public housing complexes, and other multi-family homes to supply and service coin- and debit-card operated washers and dryers.
The company also sells commercial laundry equipment to laundromats.
In a company fact sheet, Mac-Gray says is has created a number of innovations, including the LaundryView online monitoring system, which allows residents to see a virtual display of their laundry room and which machines are available.
Mac-Gray says it is among the top three firms in a laundry management industry that generate about $ 2 billion in sales. Still, the top firms account for only about one-third of the industry revenues, leaving plenty of room for "growth and consolidation opportunities," Mac-Gray noted in the fact sheet.
CSC Service Works also provides commercial laundry services, as well as coin-operated air pumps for cars at gas stations and convenience stores. CSC says it has more than 1 million machines operating across the country.
In July CSC merged with Canadian company Sparkle Solutions Corp., Canada's third-largest laundry service operator.
Gail Waterhouse can be reached at gail.waterhouse@globe.com. Follow her on Twitter at @gailwaterhouse.
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