Completion of Textile Rental Acquisition (3542A)
March 29 2012 - 6:49AM
UK Regulatory
TIDMJSG
RNS Number : 3542A
Johnson Service Group PLC
29 March 2012
29 March 2012
Johnson Service Group PLC ("Johnsons" or the "Group")
OFT Clearance and Completion of Textile Rental Acquisition
On 23 January 2012, Johnson Service Group PLC announced that its
Textile Rental division, Johnsons Apparelmaster Limited ("JAM"),
had exchanged contracts relating to the acquisition of the business
and specified garment, linen, mat and towel contracts and related
assets of Cannon Textile Care ("Cannon") from OCS Group UK Limited
("OCS") for a net consideration of GBP6.1 million (plus costs and
expenses) (the "Acquisition"). The Acquisition was conditional on a
number of points, including clearance from the Office of Fair
Trading.
The Group is pleased to announce that it has today received
regulatory clearance from the Office of Fair Trading and that all
other conditions relating to the Acquisition have now been
satisfied. Accordingly the Acquisition is due to complete on 4
April 2012, with an effective date of close of business on 30 March
2012.
As previously announced, the Acquisition is not expected to have
an impact on adjusted operating profit (before intangibles
amortisation and exceptional items) for the current year, but is
expected to be accretive thereafter. The cost of integrating the
businesses is expected to be approximately GBP1.7 million, which
will be treated as a one-off, exceptional item in the year ending
31 December 2012.
The estimated annual revenue arising from the acquired contracts
was GBP15.0 million at the time of exchange in January 2012.
John Talbot, Chairman of JSG commented "We are delighted that
the Cannon acquisition has been finalised and will add to our
extremely successful Textile Rental division. The completion of the
Cannon acquisition, together with the acquisition of Nickleby in
February, demonstrates the Board's commitment to supplementing
organic growth with strategic bolt on acquisitions."
Enquiries:
Johnson Service Group PLC
John Talbot, Executive Chairman
Yvonne Monaghan, Finance Director
Tel: 01928 704600
Investec Investment Banking (NOMAD) Newgate Threadneedle
James Grace Graham Herring
David Flin John Coles
Tel: 020 7597 4000 Tel: 020 7653 9850
www.johnsonplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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