Business
K-Bro Completes Transformational Acquisition of Fishers Topco Ltd.
K-Bro Completes Transformational Acquisition of Fishers Topco Ltd. Canada NewsWire...
About this update from K-bro Linen Inc.
[{"type":"text","content":"\n\n\n\nK-Bro Completes Transformational Acquisition of Fishers Topco Ltd.\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\n\nCanada NewsWire\nEDMONTON, Nov. 27, 2017\n\n\n\n(TSX:KBL)\n\n\n\nEDMONTON, Nov. 27, 2017 /CNW/ - K-Bro Linen Inc. (\"K-Bro\" or the \"Corporation\") today announced that it has successfully completed the previously announced £35 million (prior to any earn-out consideration that may become payable on incremental EBITDA (subject to certain adjustments and a fixed linen expense of 11.4% of revenue) in excess of £5.0 million for the fiscal year ending December 31, 2017) acquisition (the \"Acquisition\") of Fishers Topco Ltd. (\"Fishers\"), a leading commercial laundry business in Scotland and the North East of England providing linen and garments primarily to the hospitality sector. \n\nThe Acquisition was funded through K-Bro's amended senior secured revolving credit facility of C$100 million (the \"Amended Credit Facility\"). K-Bro expects to close its previously announced offering of 804,000 common shares (\"Shares\") at a price of $37.35 per Share for gross proceeds of $30,029,400 (the \"Offering\") on or about December 12, 2017. The offering was conducted on a bought deal basis by a syndicate of underwriters led by TD Securities Inc. The net proceeds from the Offering will be used to partially pay down indebtedness that was incurred under K-Bro's Amended Credit Facility to fund the Acquisition and to pay certain fees and expenses related to the Acquisition. K-Bro has granted the syndicate an over-allotment option, exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 120,600 Shares which, if exercised, would increase the gross Offering size to $34,533,810, to cover over-allotments, if any, and for market stabilization purposes. \n\n\"We very much appreciate the enthusiastic support and interest that we have received from the capital markets and our customers since we announced the Acquisition.  We believe the reaction reflects the transaction terms and Fishers growth opportun...