WASH Multifamily Laundry Systems, whose washers and dryers are used weekly by more than 5 million people in North America, is exploring a sale that could value it at more than $900 million, including debt, according to people familiar with the matter.
WASH's private equity owner, CHS Capital, has asked investment bankers at Moelis & Co (MC.N) to run an auction for the company, the people said on Tuesday.
WASH has adjusted annual earnings before interest, tax, depreciation and amortization of about $120 million, the people added.
First round expressions of interest are expected this week, according to the sources.
The sources asked not to be identified because the sale process is confidential. WASH and CHS did not respond to requests for comment, while a Moelis spokeswoman declined to comment.
Based in El Segundo, California, WASH offers laundry facilities management services to apartment properties, college and university residence halls, military bases and other multi-housing locations.
Launched out of a garage in West Los Angeles in 1947, WASH quickly outgrew buildings on Santa Monica Boulevard. It expanded to 15 U.S. states as well as Canada. CHS took a majority stake in the company in 2008 for an undisclosed amount.
WASH doubled in size through 14 mergers and acquisitions in the last five years. It has over 500,000 installed machines in 70,000 locations, and $480 million in revenue, according to its website.
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