WALTHAM, Mass., Feb. 8 /PRNewswire-FirstCall/ -- Mac-Gray Corporation (NYSE: TUC), the nation's premier provider of laundry facilities management services to multi-unit housing locations, today announced that it has sold its MicroFridge® (Intirion Corporation) business to Danby Products, one of the largest appliance marketing companies in North America. The transaction is valued at approximately $11.5 million. Danby paid Mac-Gray $8.5 million in cash, and assumed existing liabilities and financial obligations for MicroFridge totaling approximately $3 million.
"Since we acquired it in 1998, MicroFridge has served as a good complement to our core laundry facilities contracting business, providing cross-selling opportunities as well as generating cash flow and earnings," said Stewart G. MacDonald, Mac-Gray's chief executive officer. "During that time, it has realized attractive growth and increased market share. In recent years, however, with the more dramatic growth of our laundry facilities management business it has taken on a reduced importance as a contributor to our overall operations. We believe that divesting this non-core asset is in the best interests of our shareholders.
"Danby and MicroFridge are a great fit, because Danby is a well-respected company and one of the leading appliance suppliers in North America. We are confident that MicroFridge employees and customers will be well-served in their relationship with Danby going forward."
MicroFridge sells a proprietary line of products, primarily its combination refrigerators/freezers/microwave ovens utilizing its Safe Plug® circuitry. The products are marketed throughout the United States to colleges, hotels and motels, and assisted living facilities, as well as to the federal government for military housing.About Danby Products Founded in 1947, Danby Products is one of North America's largest household appliance marketing companies. Danby's strength is in identifying and developing innovative, quality products at competitive pricing that fit the lifestyles of today's consumers. The Company's products are marketed under six retail names: Danby®, Danby Designer®, Danby Diplomat®, Danby Premiere®, Simplicity® ( Canada only) and Danby Silhouette®, as well as private brands for major retail stores. All of Danby's products meet and exceed all environmental safety standards and offer UL, CSA, NRTL and ETL recognized standards approvals. For more information on Danby and its products, please visit www.danby.com. 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 manages approximately 88,000 laundry rooms located in 43 states and the District of Columbia. Mac-Gray also sells and services commercial laundry equipment to retail laundromats and other customers through its product sales division. To learn more about Mac-Gray, visit the Company's website at www.macgray.com. 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. 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, general economic conditions, changes in multi-housing vacancy rates, the Company's ability to renew long-term customer contracts, and those risks set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 under "Risk Factors" and in other reports subsequently filed with the Securities and Exchange Commission.
Contact: Michael J. Shea Chief Financial Officer Mac-Gray Corporation 781-487-7610 Email: email@example.com Jim Buckley Executive Vice President Sharon Merrill Associates, Inc. 617-542-5300 Email: firstname.lastname@example.orgSOURCE Mac-Gray Corporation