Business
Eur31.5 Million Acquisition of Celtic Linen
Eur31.5 Million Acquisition of Celtic Linen.
About this update from Johnson Service Group Plc
[{"type":"text","content":"\n\n\n1 September 2023\nAIM: JSG\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\nJohnson Service Group PLC ('JSG' or 'the Group')\n€31.5 Million Acquisition of Celtic Linen in Republic of Ireland ('the Transaction')\n \nJohnson Service Group PLC announces that, on 31 August 2023, it acquired the entire issued share capital of Harkglade Limited, together with its subsidiaries Celtic Linen Limited and Millbrook Linen Limited (together, 'Celtic Linen'). Celtic Linen services the Republic of Ireland's Healthcare and Hotel, Restaurant and Catering ('HORECA') sectors; it is the largest linen supplier to the Republic of Ireland's Healthcare sector and is the second largest linen supplier to the HORECA sector.\n \nTransaction Highlights\n§ Acquisition of Celtic Linen, one of the Republic of Ireland's leading textile services suppliers to the Healthcare and HORECA sectors with revenue of €29.0 million in the financial year ended 1 January 2023.\n§ Consideration, payable in cash on completion, of €31.5 million (£27.1 million[1]) on a debt free cash free basis, subject to a locked box mechanism and a normalised level of working capital.\n§ The consideration includes €3.6 million in relation to two freehold facilities utilised by the business.\n§ Acquisition expected to be immediately earnings enhancing and in-line with our stated strategy of seeking out value accretive acquisitions and expanding our geographic coverage.\n§ Further diversification of our customer base, with over 50% of Celtic Linen's revenue derived from the Healthcare sector.\n§ Celtic Linen's existing and experienced management team to remain with the business.\n \nCommenting on the Transaction, Peter Egan, CEO said:\n\"We are delighted to have completed the acquisition of Celtic Linen, which represents a further significant step in our strategy to expand the range and scale of services we offer. I have known Celtic Linen for many years and have been very impressed with the quality of the business, its reputation for excellent customer service and the growth it has achieved in recent years. The existing senior management team will remain with the business with Joanne Somers, Managing Director of Celtic Linen, reporting directly to myself. It gives me great pleasure to welcome each and every employee of Celtic Linen to the Group...