Mac-Gray Sells MicroFridge

February 9, 2010 (FinancialWire) — Mac-Gray Corp. (NYSE: TUC), a provider of laundry facilities management services to multi-unit housing locations, said it has sold its MicroFridge business to Danby Products, an appliance marketing firm.

The transaction is valued by Mac-Gray at around $11.5 million. Under the deal, Danby paid Mac-Gray $8.5 million in cash, and assumed existing liabilities and financial obligations for MicroFridge totaling around $3 million.

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. 

Mac-Gray acquired MicroFridge in 1998 as a complement to its core laundry facilities contracting business. It said the unit has provided cross-selling opportunities as well as generating cash flow and earnings, but has taken on a reduced importance as a contributor to the firm’s overall operations.

Massachusetts-based Mac-Gray manages around 88,000 laundry rooms located in 43 states and the District of Columbia. The company also sells and services commercial laundry equipment to retail laundromats and other customers through its product sales division.

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) website (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.