KALIHI (KHNL) - The parent company of Young Laundry has agreed to purchase long-time competitor, Ceasars Cleaners.
It's the latest move by U.S. Dry Cleaning Corporation to expand its operations, not only in Hawaii -- but, across the country. The company that owns Young Laundry hopes to add a little more sheen to its bottom line.
Two months ago, it became the first dry cleaning company in the country to trade publically. And now, it has purchased the four-store, Ceasar Cleaners, for $2.1 million.
''You've seen other consolidations industries, grocery stores, trash pick. The reason is there are a number of fixed costs that you have to find a way to share, " said Michael Drace.
Michael Drace, is the president of U.S. Dry Cleaning. He explains, in today's business climate, consolidation is the key to long-term success. Drace says, for his company, the timing was right.
''Health care is going own. Fuel cost is going up. You have to maximize the use of your facilities and your fixed costs."
But, the business maneuvering doesn't stop at our island shores. U.S. Dry Cleaning has also acquired cleaners in Central and Southern California.
At the close of the Thursday market, U.S. Dry Cleaning held a value $31 million.
''It's very exciting. I've been with Young for 30 years. I've been with U.S. Dry Cleaning for two. Today's the day."