Johnson Service Group plc : Completion Of Textile Rental Acquisition
Johnson Service Group PLC ("Johnsons" or the "Group") OFT Clearance and Completion of Textile Rental Acquisition
On 23 January 2012, Johnson Service Group PLC announced that its Textile Rental division, Johnsons Apparelmaster Limited ("JAM"), had exchanged contracts relating to the acquisition of the business and specified garment, linen, mat and towel contracts and related assets of Cannon Textile Care ("Cannon") from OCS Group UK Limited ("OCS") for a net consideration of £6.1 million (plus costs and expenses) (the "Acquisition"). The Acquisition was conditional on a number of points, including clearance from the Office of Fair Trading.
The Group is pleased to announce that it has today received regulatory clearance from the Office of Fair Trading and that all other conditions relating to the Acquisition have now been satisfied. Accordingly the Acquisition is due to complete on 4 April 2012, with an effective date of close of business on 30 March 2012.
As previously announced, the Acquisition is not expected to have an impact on adjusted operating profit (before intangibles amortisation and exceptional items) for the current year, but is expected to be accretive thereafter. The cost of integrating the businesses is expected to be approximately £1.7 million, which will be treated as a one-off, exceptional item in the year ending 31 December 2012.
The estimated annual revenue arising from the acquired contracts was £15.0 million at the time of exchange in January 2012.
John Talbot, Chairman of JSG commented "We are delighted that the Cannon acquisition has been finalised and will add to our extremely successful Textile Rental division. The completion of the Cannon acquisition, together with the acquisition of Nickleby in February, demonstrates the Board's commitment to supplementing organic growth with strategic bolt on acquisitions."
SOURCE: Johnson Service Group plc