Business
K-Bro Announces New Eleven Year Province Wide Contract with Alberta Health Services
K-Bro Announces New Eleven Year Province Wide Contract with Alberta Health Services ...
About this update from K-bro Linen Inc.
[{"type":"text","content":"\n \n \n \n K-Bro Announces New Eleven Year Province Wide Contract with Alberta Health Services\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\ntable p, #divContent table p\n{\nmargin: 0px;\nmargin-left: 3.8px;\nfont-size: 8pt !important;\nfont-family: Arial;\ncolor: black;\nmargin-right: 0pt;\n}\ntable th, #divContent table th\n{\nfont-weight: unset !important;\ntext-align: unset !important;\nvertical-align: unset !important;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n (TSX: KBL)\n \n \n \n EDMONTON, AB\n \n ,\n \n July 26, 2021\n \n /CNW/ - K-Bro Linen Inc. (the \"Company\") announced today that it has signed a new 11-year contract, with renewal options for up to an additional 9 years, to provide laundry and linen services for Alberta Health Services (\"AHS\") province-wide.  The contract is the result of a competitive RFP process and extends K-Bro's existing relationship with AHS.  The award renews all of K-Bro's existing AHS volume in\n \n Edmonton\n \n and\n \n Calgary\n \n and awards additional healthcare volume for rural Alberta.  The new volume will be serviced from K-Bro's existing state-of-the-art facilities in\n \n Edmonton\n \n and\n \n Calgary\n \n .\n \n \n \"We are very pleased to have signed our new contract with AHS that extends our decades-long relationship with AHS and its predecessors.  We are excited that we will extend our relationship to the entire province\", said\n \n Linda McCurdy\n \n , President & Chief Executive Officer.  \"We will work closely with all AHS facilities to ensure a smooth and rapid transition.\"\n \n \n Ms. McCurdy went on to say that \"we expect incremental annual revenue of approximately\n \n $10 million\n \n , and  margins on that revenue to be consistent with K-Bro's historical margins.  While we expect some one-time transition costs and temporary margin impact as we move all of the new volume into our two facilities in\n \n Edmonton\n \n and\n \n Calgary\n \n , we expect to return to normalized margins once our transition is complete in mid-2022.  We expect capital expenditures...