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K-Bro Announces New Vancouver-area Contract
K-Bro Announces New Vancouver-area Contract K-Bro Announces New Vancouver-area Con...
About this update from K-bro Linen Inc.
[{"type":"text","content":"\n\n\n\nK-Bro Announces New Vancouver-area Contract\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}\n\n\n\n\n\n\nK-Bro Announces New Vancouver-area Contract\nCanada NewsWire\nEDMONTON, March 2, 2016\n\n\n\n(TSX: KBL) \n\n\n\nEDMONTON, March 2, 2016 /CNW/ - K-Bro Linen Inc. (the \"Company\") announced today that it has been awarded a new 10 year contract to provide laundry and linen services for 23 healthcare facilities in Vancouver and the surrounding area. The contract is the result of a competitive RFP process and contains a renewal option for an additional 10 years. K-Bro is excited to extend its existing relationships with Fraser Health Authority, Provincial Health Services Authority, and Vancouver Coastal Health Authority. \n\nThe contract renews all of K-Bro's existing volume and awards additional healthcare volume at 6 new facilities which are currently processed by a competitor. A net increase in revenue of approximately $5.2mm per year (after taking into account price reductions on certain existing accounts) is expected. \n\nK-Bro anticipates building a new state-of-the-art facility in the Vancouver area within the next 30 months with a projected investment of up to $50 million. The new facility will enable the Company to expand current capacity as well as consider partial consolidation with its existing two Vancouver-area facilities. In addition, part of the Company's investment in the new facility will provide for an upgrade and replacement of equipment at its existing Vancouver-area facilities. K-Bro believes it will achieve significant operating efficiencies at its new plant. The Company will consider appropriate financing arrangements over the next two years.  \n\n\"We are very pleased to have the opportunity to expand our long-term relationship with so many Lower Mainland Health Authorities\", said Linda McCurdy, President & Chief Executive Officer. \"We began processing healthcare volume in the Vancouver area in 2002, and we innovated and worked collaboratively with our customers over the past 14 years to earn their confidence and tru...