1st May 2015 06:50
LONDON (Alliance News) - Textile services company Johnson Service Group PLC on Friday said it has struck a deal to buy London-based table linen and chef's wear supplier London Linen Supply Ltd in a GBP65.4 million deal.
Johnson Service said it will pay the consideration in cash, funded by a new GBP120 million banking facility, and will launch a share placing of 30 million shares at 73 pence per share to raise GBP21.1 million. The placing will be run by Investec Bank PLC. Shares in Johnson Service closed at 73 pence on Thursday.
Johnson said it expects the acquisition to be immediately earnings accretive and said it will significant boost its earnings in 2016 and after. The deal will make Johnson Service the largest provider of restaurant and catering sector linen.
Johnson also added it is currently trading in line with its expectations.
"We are delighted to have completed this acquisition which represents a further significant step in our plan to expand the range and scale of services offered by our Textile Rental business. The new equity maintains the strength and flexibility in our balance sheet which is important as we continue to look for further value enhancing acquisitions," said Chairman Paul Moody.
By Sam Unsted; [email protected]; @SamUAtAlliance
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