1 February 2016
Acquisition of Zip Textiles (Services) Limited
Johnson Service Group PLC ("JSG" or the "Company"), a leading textile services group, has acquired the entire share capital of Zip Textiles (Services) Limited ("Zip"), for a cash consideration of £15.0 million on a debt-free, cash-free basis, together with additional debt of £2.7 million in relation to the financing of recently installed processing equipment.
Zip, which serves the high volume hotel and leisure sectors from its processing plant in Birmingham, complements JSG's existing Bourne business in providing geographical reach, operational efficiencies and additional production capacity for central England, with the potential to expand this further.
Whilst expected to be immediately earnings enhancing, the main focus of this acquisition is to improve operational capacity and extend the Company's reach of existing hotel customers. It follows the recent successful acquisitions of Ashbon and London Linen in 2015.
Zip reported revenue of £7.0 million for the year to 31 January 2015. The business operates from a freehold property (book value of £4.4 million) which was extended in 2015 and fitted out with modern equipment at a cost of some £2.7 million.
Chris Sander, CEO of Johnson Service Group, said:
"Zip is an extremely well invested business that offers good synergies with Bourne, geographical reach and scope to increase processing capacity significantly. Having expanded our hotel and restaurant divisions through the acquisitions of Ashbon and London Linen, the addition of Zip to the JSG family marks the latest milestone in our growth strategy."
Enquiries:
Johnson Service Group PLC |
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Chris Sander, CEO Yvonne Monaghan, CFO Tel: 01928 704600 |
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Investec Investment Banking (NOMAD) |
Bell Pottinger |
David Flin Matt Lewis James Rudd Tel: 020 7597 4000 |
Rollo Crichton-Stuart Gavin Davis Greg Wood Tel: 020 3772 2500 |
