11th Oct 2005 10:31
Johnson Service Group PLC11 October 2005 11 October 2005 Johnson Service Group PLC Acquisition of SGP Property Services Limited Johnson Service Group PLC ("Johnson") announces the acquisition of the whitecollar facilities management business SGP Property Services Limited ("SGP")through the acquisition of its holding company Macrocom (840) Limited ("Macrocom") on a debt and cash free basis for a total consideration of up to£28.7 million. The consideration payable is £23.2 million in cash on completion,plus up to £4.0 million of deferred cash consideration dependent on achievingsales targets during the next 21 months and up to £1.5 million in additionalcash consideration payable to the management team dependent upon attaining grossprofit targets of the business in each of the three years to 31 December 2008.The acquisition will be funded from existing debt facilities. The Vendors* are two individuals and the management team. The senior managementteam, including the managing director, Kevin Elliott, will remain with thebusiness. SGP, based in Leicester but operating nationally, provides a range of propertymanagement services ranging from retail store and office acquisition,maintenance helpdesk, procurement, lease and rates services through todilapidations and disposals. The company has over 220 employees and managesapproximately 25,000 sites across the UK for 40 clients including a number ofthe UK's leading retailers, operators of licenced premises and financialservices businesses. SGP manages, as agent on behalf of its clients, in excessof £120 million expenditure per year on building repairs, maintenance andprojects within its clients' property portfolios. The Company has grown solidlysince its creation in 1999 following its management buyout from Sears. With asignificant future sales pipeline developed we are confident of continuing tobuild on its strong performance from the combined platform. SGP had turnover and EBIT for the year ended January 2005 of £8.6 million and£2.0 million respectively with net assets at that date of £2.8 million. Grossassets of the business are £4.6 million. The acquisition is expected to beearnings enhancing in the first full financial year of ownership. Johnson Group CEO Stuart Graham said: "The acquisition of SGP, whichpredominantly serves the financial services and retail sectors, perfectlycomplements our existing facilities management business of Johnson WorkplaceManagement ("JWM") which services primarily the commercial office market.Together they form a significant facilities and property management operationwith a quality and developing client base which now has the critical massnecessary to expand within existing markets and to drive further organic growthby launching into new property sectors with an increased range of services." \* The Vendors are Mr Leonard O'Brien, Mr John Readman, Mr Kevin Elliot, MsJennifer Allton, Mr James Hetherington and Mr Paul Smith. www.johnsonplc.com For further information, please contact: Hudson Sandler Johnson Service Group PLC Michael Sandler Stuart Graham, CEOJames Benjamin Jim Wilkinson, CFOTelephone: 020 7796 4133 Telephone: 020 7290 0390 Notes to editors - The Johnson Service Group The Johnson Service Group is a support services business with two principalactivities: Textile Related Services and Facilities Management. The Group's coreactivities have been developed and strengthened through a combination ofstrategic acquisitions and organic growth. Textile Related Services includes some of the industry's leading names. JohnsonsApparelmaster is Britain's leading workwear rental business; CCM specialises inthe manufacture and sourcing of workplace garments; Dimensions is the country'sleading supplier of retail corporatewear; DCC is the leading supplier ofcorporatewear to the finance industry; Johnsons Cleaners, Britain's No. 1drycleaning brand, and Sketchley, provide a nationwide network of circa 600retail drycleaning shops. Jeeves of Belgravia provides an exclusive and bespokedrycleaning service within the London area. The linen and hospitality businesscomprises Stalbridge Linen, which is Britain's leading supplier of linen andchefs' wear to the leisure, professional catering and corporate hospitalitysectors and Johnson Hospitality Services, which is the British market leader inthe hire of catering equipment, hospitality furniture and related items tosporting, entertainment and similar events. Johnson Workplace Management, provides a comprehensive range of services basedon a unique business model. This focuses on management, property expertise andthe provision of a wide range of support services to FTSE businesses, nationalcompanies and institutions. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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