Business
Acquisition of Portgrade Limited
Acquisition of Portgrade Limited.
About this update from Johnson Service Group Plc
[{"type":"text","content":"\n \nRNS Number : 7469W Johnson Service Group PLC 29 April 2016 \n\nTHIS ANNOUNCEMENT, INCLUDING THE APPENDIX AND THE INFORMATION IN IT, IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER OR AN INVITATION TO ACQUIRE OR DISPOSE OF ANY SECURITIES.\n \nFor immediate release\n29 April 2016\n \n \nAcquisition of Portgrade Limited (trading as Afonwen)\nand\nProposed placing to raise £28.7 million (net)\n \nJohnson Service Group PLC (AIM:JSG) (\"JSG\", the \"Company\" and together with its subsidiary undertakings, the \"Group\") is pleased to announce the acquisition of the entire issued share capital of Portgrade Limited, together with its trading subsidiary Afonwen Laundry Limited (\"Afonwen\"), for a cash consideration of £52.6 million on a debt free, cash free basis. Afonwen is a leading supplier of high volume hotel linen and operates from three laundry facilities in Pwllheli, Reading and Cardiff and a substantial distribution depot in Leeds.\n \nIn addition, JSG announces that it intends to place 33,061,540 new Ordinary Shares to raise approximately £28.7 million, net of expenses.\n \nThe Acquisition and the Placing are not inter-conditional.\n \nHighlights\n§ Acquisition consideration of £52.6 million payable in cash on completion on a debt free, cash free basis, subject to normalised working capital\n§ Intended placing of 33,061,540 new Ordinary Shares to raise approximately £28.7 million (net)\n§ Increased £150 million financing package agreed with existing banks\n§ Acquisition and Placing taken together are expected to be immediately earnings enhancing\n§ Acquisition in-line with stated strategy of targeting value accretive acquisitions and follows the highly successful acquisitions of Bourne in 2014, London Linen and Ashbon in 2015 and Zip in January 2016\n§ JSG will become one of the UK's largest providers of linen to the high volume hotel market\n§ The Acquisition will provide JSG with expanded national coverage\n§ Additional complementary acquisi...