|
Johnson Service Group PLC on Friday said it has acquired the entire issued share capital of Harkglade Ltd, the owner of prominent Irish linen supplier Celtic Linen, for just over £27 million. The Cheshire, England-based textile services provider said the acquisition includes Celtic Linen, which comprises Harkglade’s subsidiaries Celtic Linen Ltd and Millbrook Linen Ltd. Johnson Service paid consideration of €31.5 million, or £27.1 million, upon completion of the transaction. This included €3.6 million in relation to two freehold facilities used by Celtic Linen. In addition, Johnson has agreed to fund €1.9 million of capital expenditure committed to by Celtic Linen prior to the deal’s completion. Johnson said Celtic Linen, a linen rental and laundry services provider based in Wexford, Ireland, is the largest linen supplier to the Republic of Ireland’s healthcare sector and the second-largest supplier to the hotel, restaurant and catering sectors. ‘We are delighted to have completed the acquisition of Celtic Linen, which represents a further significant step in our strategy to expand the range and scale of services we offer,’ commented Chief Executive Officer Peter Egan. Johnson also said buying Celtic Linen is in line with its aims of seeking value accretive acquisitions, and expanding its geographic coverage. It said it expects the acquisition to be ‘immediately earnings enhancing,’ and may in future explore operational synergies with Lilliput Services, its commercial laundry business based in Belfast, Northern Ireland. Johnson Service shares were up 2.6% at 121.83 pence in London on Friday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
|
