Industry Newsline - April 2006

Industry Newsline


Cincinnati, OH-based Lexair, Inc. has announced the hiring of John Jennings as national sales director — a newly-created position within the valves division. Jennings’ primary duty will be to oversee outside sales to both distributors and direct customers, while trying to increase the product-knowledge levels of the distributors and their sales personnel. Prior to joining Lexair, Jennings was a product manager, regional sales manager, and division manager for the Standard Products Group, during a 10-year span at Rexroth Pneumatics.

Ardex Labs of Philadelphia, PA has announced the addition of George Bryans to its sales team. Bryans has been in the industry for over fifteen years and has primarily worked with distributors, helping them grow presence in their market place. He will be responsible for distributor development in the Midwestern, Northeastern regions of the United States and Canada.


Bclip Productions of Asheville, NC, in partnership with WashUSA and The Make-A-Wish Foundation® of America, launched a call-to-action video at Car Care World Expo’s Opening Breakfast at the Las Vegas Convention Center March 13. Bclip assembled the video from material provided by The Make-A-Wish Foundation and with help from WashUSA.

WashUSA organizes car washes across the country one day a year to raise funds for The Make-A-Wish Foundation. Bclip created a video that encompasses the heart and soul of the noble charity and will be featured at car wash association membership meetings this year.

In addition to the unveiling of the video, WashUSA had a booth on the show floor to sign up 2006 participants for the June 17 event. The organization had its entire team of regional directors and board members at the show volunteering their time to educate and thank those who have supported the effort over the years.


Mount Laurel, NJ-based Mace Security International, Inc. (“Mace”) (Nasdaq: MACE), a manufacturer of electronic surveillance and personal defense products and an owner and operator of car and truck wash facilities, recently announced that it had signed an agreement to sell its Arizona car wash region to CW Acquisition, LLC for $19.5 million — a price above the recorded net book value of approximately $17 million. The Arizona region represents 12 car washes and approximately $10 million of Mace’s total revenues of approximately $68 million in 2005. Nine of the car washes are owned and three are leased.

The purchase price consists of $18.5 million in cash and $1 million to be paid to Mace in the form of a three-year promissory note bearing 7.5% interest. The proceeds from this transaction will be used to pay down debt and fund further expansion of Mace’s security segment. Mace will pay down approximately $10.3 million of debt associated with the Arizona car washes, and approximately $2.9 million of additional debt. Mace will also pay a pre-payment penalty estimated at between $1.5 million and $2.5 million to be incurred as a result of the early retirement of the above-mentioned $10.3 million of debt.

The company’s total outstanding debt is approximately $26.7 million, and at the completion of this transaction Mace’s total debt will be reduced to approximately $12.9 million. Mace estimates that the net cash proceeds from the transaction after costs and debt payments will be approximately $2.2 million, excluding future receipts on the $1 million promissory note. At December 31, 2005, the Company’s cash and short-term investments totaled approximately $11.4 million.

This is a major step in Mace’s goal to sell all of its car washes and invest in its security segment, and follows an earlier announcement that the company had sold an exterior-only car wash in West Chester, PA for $400,000 — approximately 15 times EBITDA. In addition to that announcement, Mace made it known that it had signed a lease-to-sell agreement with Eagle United Truck Wash, LLC to lease Mace’s five truck washes for up to two years. Eagle will pay Mace $9,000 per month to lease the company’s truck washes, and is responsible for all underlying lease expenses. Within the next two years, Eagle must purchase the washes for $1,200,000.

At the completion of the Arizona region transaction, Mace will have 36 remaining car washes located in Florida, Texas, New Jersey, Pennsylvania and Delaware.


Dosatron International based in Clearwater, FL is celebrating its 20th anniversary, and will commemorate the occasion on May 29, 2006.

Eddy Kelly, founder and president of the company, first arrived in the United States with literally a suitcase and a dream.

His hard work and perseverance has paid off. Eddy attributes much of Dosatron’s success to his dedicated employees. After 20 years, Dosatron’s operations have stayed true to Eddy’s initial vision, and have proved to be extremely successful.

It all began in the horticulture industry. Over the last 20 years, the company has expanded its reach into livestock and agricultural applications; industrial marketplaces such as car washes, hygiene and sanitizing, metal processing, and printing; and environmental treatments.


Kleen-Rite Corp., a major supplier to the car wash industry, has announced the opening of its new Western Distribution Center located in Las Vegas, NV.

Since 1959, Kleen-Rite Corp. has maintained its main warehouse in Columbia, PA. “The whole idea of having this new facility,” says Keith Lutz, vice president of the company, “is to be closer to our customers on the other side of the country. In the fast-paced world of car washing, getting your needed supplies and replacement parts as quickly as possible is crucial to our customers’ success. Now an operator in San Jose, CA can receive his goods in two days instead of five or six.”

The new facility was unveiled during Car Care World Expo in Las Vegas, March 13-15, 2006. The facility began shipping orders March 20th and plans are that it will be up to full speed by the middle of April.


Lexair’s newly-redesigned site provides visitors a detailed overview of its fluid power products, valves and machine tool accessories. The web site is grouped by the company’s two product divisions: valves and machine tool accessories. Lexair’s valve division consists of poppet valves, TUBE-O-MATIC® valves, Mini 1 pneumatic valves, Hi-Cyclic® directional control valves, shuttle valves, and solenoid operators. The machine tool accessories division consists of bar feeds, collet chucks, and collet closers — all of which are compatible with many different applications. Other content on the site includes valve distributor lookup, information and manufacturer representative contact pages.

Precision Fluid Controls Inc. of Auburn, CA has announced the availability of a new web site ( featuring technical information on each of the products designed for use in car washes, truck washes, misting and fogging systems, and other high-pressure water applications. Visitors can view a technical data sheet for each product as well as download a PDF version to print. Preparations are underway to enable online purchasing in the near future.


Byrd Family Properties, LLC, a Nashville-based company, has acquired the assets of Lebanon Pride Car Washes Inc., a Lebanon, TN-based company that operates area self-service and in-bay automatic car washes under the nationally-branded and -licensed trade name of AquaJet Auto Wash™. AquaJet Auto Wash is a registered trademark of Mark VII Equipment Inc. of Arvada, CO, the company that supplies car wash equipment to the sites.

With this acquisition, Byrd Family Properties operates a total of five AquaJet Auto Wash facilities in Davidson and Wilson counties, with plans underway to develop other AquaJet Auto Wash facilities in middle and eastern Tennessee.

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