K-bro Linen Inc. · TSX:KBL
K-bro Linen — Merger or Acquisition (May 2025)
17 slides from K-bro Linen's merger presentation, May 13, 2025
Slide 1: Transformational Acquisition of Star Mayan
Transformational Acquisition of Star Mayan May 13, 2025 A preliminary short form prospectus containing important information relating to the securities described in this document has not yet been filed with the securities regulatory authorities in each of the provinces and territories of Canada. The
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking information that represents internal expectations, estimates or beliefs concerning, among other things, future activities or future operating results and various components thereof. In particular, this presentation contains forwar
Slide 3: K-Bro Announces Transformative £107 million Acquisition of Star Mayan
K-Bro Announces Transformative £107 million ($199 million) Acquisition of a Leading U.K. Healthcare and Hospitality Laundry and Linen Processor, STAR Mayan Limited (“Star Mayan"), dba Synergy, Grosvenor and AeroServe K-Bro Presenters: Agenda: • Strategic Rationale • Star Mayan Overview • Pro Forma K
Slide 4: Compelling Strategic Rationale
Compelling Strategic Rationale Creates a top 3 national U.K. commercial laundry business with strategic national presence Establishes coast-to-coast geographic footprint in both Canada and the U.K. + Adds a leading U.K. healthcare-focused platform, enhancing revenue diversification by mix and geogra
Slide 5: Star Mayan Business Overview
Star Mayan Business Overview Star Mayan Highlights Leading U.K. commercial laundry strategically located in the Northwest, Midlands, and South of England Healthcare-focused business with stable, recurring Second Largest Private Recognizable U.K. Healthcare Laundry revenue that indexes to cost inflat
Slide 6: Creates a Top National U.K. Commercial Laundry Business
Creates a Top 3 National U.K. Commercial Laundry Business with Strategic National Presence Perth Combined ~10% U.K. market share in Coatbridge Cupar £1.6 billion total U.K. market Livingston Dumfries Strategically located geographic footprint Newcastle Workington with coast-to-coast coverage St. Hel
Slide 7: Establishes Coast-to-Coast Geographic Footprint in Canada and the U.K.
Establishes Coast-to-Coast Geographic Footprint in Both Canada and the U.K. K-Bro Pro Forma Snapshot Perth Coatbridge Cupar Livingston $551M $99M Pro Forma Pro Forma Dumfries TTM (Mar. 2025) TTM (Mar. 2025) Newcastle Workington Revenue1 Adjusted EBITDA1,2 St. Helens Sheffield Edmonton Derby Vancouve
Slide 8: Adds a Leading U.K. Healthcare-Focused Platform
Adds a Leading U.K. Healthcare-Focused Platform, Enhancing Revenue Diversification by Mix and Geography K-Bro Consolidated Revenue U.K. Revenue Geographic Mix Business Mix Business Mix Current Current Current 70% 30% 52% 48% 6% 94% Canada U.K. Healthcare Hospitality Healthcare Hospitality Pro Forma
Slide 9: Highly Complementary to Existing U.K. Businesses, Driving Anticipated Synergies
Highly Complementary to Existing U.K. Businesses, Fishers and Shortridge, Driving Significant Anticipated Synergies1 Category Overview Time to Achieve Amount Cost Corporate cost 6-12 months £0.5M+ Synergies Overhead management Operational Supplier savings 24 months £0.75M+ Efficiencies Improved prod
Slide 10: Well Advanced Strategy for Platform Integration
Well Advanced Strategy for Platform Integration1 Day One Initiatives Phased Approach to Integration Newly Created U.K. Managing Director Long-tenured existing K-Bro U.K. executive Phase 1 Integration 12-18 months Regional Lead Direct Reports Experienced business leads Phase 2 Local Optimization Esta
Slide 11: K-Bro is a Leader in Healthcare with over Half a Century of Experience
K-Bro is a Leader in Healthcare with over Half a Century of Experience as an Essential Service Provider K-Bro Healthcare Highlights Market leader in healthcare Over 50 years experience in healthcare Best-in-class healthcare accreditations Experts in hygiene Sterling customer base across health syste
Slide 12: Attractive Pro Forma Financial Profile and Commitment to Leverage Target
Attractive Pro Forma Financial Profile and Commitment to Existing Long-Term Leverage Target Compelling £107 million cash purchase price represents 7.6x TTM 7.6x Adjusted EBITDA1,2, including impact of IFRS 16 and Synergized TTM Valuation (Mar. 2025) Adjusted anticipated run-rate synergies of £2.0M2
Slide 13: Star Mayan is Strategically Aligned with K-Bro's Acquisition Criteria
Star Mayan is Strategically Aligned with K-Bro's Stated Acquisition Criteria Stated Acquisition Criteria Star Mayan Highlights Share K-Bro’s customer centric values Essential service provider to diversified customers Ability to sustain and strengthen margins Margin upside from synergies & platform o
Slide 14: Financing Details
Financing Details Transaction ▪ $70 million bought subscription receipt offering Financing ▪ $140 million amortizing term loan with 4-year maturity ▪ Committed revolving credit facility unchanged at $175 million ($121 Credit million drawn as of March 31, 2025) Facilities ▪ Additional uncommitted acc
Slide 15: 20+ Years of Organic Growth Combined with Strategic Acquisitions
20+ Years of Organic Growth Combined with a Track Record of Highly Strategic Acquisitions 10+ Acquisitions completed since IPO Active M&A Pipeline $551 in North America, Europe and similar geographies that remain highly fragmented $374 $321 Proven Track Record $277 $240 $252 of integration and $224
Slide 16: Strategic growth. Dependable income.
Strategic growth. Dependable income. Internal
Slide 17: Appendix A – Star Mayan Adjusted EBITDA Reconciliation
Appendix A – Star Mayan Adjusted EBITDA Reconciliation Non-GAAP Financial Measures Adjusted EBITDA Reconciliation K-Bro presents Adjusted EBITDA because it believes that Adjusted EBITDA is a useful supplement to net income as an indicator of operating performance. K- Twelve Months Ended March 31, Br