Johnson Service Group PLC
13 October 2003
13 October 2003
Johnson Service Group PLC
Acquisition of Facilities Management Business
Johnson Service Group PLC ('Johnson') announces it has entered into a
conditional agreement for the purchase of the whole of the share capital of the
Workplace Management (WM) business from Chesterton International plc. The
strategic acquisition of the WM business, a UK property and facilities
management operation, will give Johnson an immediate and strong presence in a
growing market sector.
Since Stuart Graham became CEO of Johnson in June 2002 he has carried out a
strategic review of the Group. One of the areas that has been identified as a
growth market was the facilities management sector and this acquisition provides
Johnson with a platform upon which to build a significant business for the
future.
Johnson already had commercial links with WM through the outsourcing to WM of
part of its property management requirements.
WM has a substantial client base including blue-chip companies and central
government departments. The existing senior management team of WM, which has
expanded the business to its current position, will continue to manage the
business.
The average length of contracts is between 3 and 5 years and WM provides a wide
range of property and facility management related services including strategic
review of portfolios, space-management and cost-reduction programmes. A
significant growth area of the business is linked to the internal planning of
working areas, both commercial and industrial, and space management which
includes related building refurbishment and fit-out projects.
WM also provides a comprehensive range of support and added value services such
as energy procurement and management, health and safety and centralised customer
help desks.
It is intended that Johnson will acquire WM for an estimated net consideration
of £9m in cash on completion. There will be an additional cash payment
representing the amount of cash in the balance sheet at completion, estimated at
£11.4m. The consideration will be financed from existing bank facilities.
Completion of the acquisition is conditional upon satisfaction of conditions
relating to, inter alia, certain third party contractual matters.
WM's turnover (management fee income) and profit before taxation for the year
ended June 2002 were £15.9m and £0.3m respectively and net assets at that date
were £1.8m. WM employs 650 people. Since that date WM has made progress in
building new revenue streams and establishing an activity pipeline to continue
its expansion. This expansion will be further assisted by Johnson's financial
strength and stability. Over the medium term WM will add an accretive dimension
to Johnson.
Johnson CEO, Stuart Graham said, 'The facilities management sector is an
expanding area of the business services market and represents a new opportunity
for the Johnson Group. We are acquiring a strong business, which we believe we
can expand significantly both in service provision and customer base'.
Enquiries: Johnson Service Group PLC
Stuart Graham, CEO
Mike Sutton, CFO
Telephone: 0151 933 6161
Hudson Sandler
Michael Sandler / Wendy Baker
Telephone 020 7796 4133
Notes to Editors
Johnson is Britain's market leader in workwear rental as well as the
manufacture and sourcing of workwear garments. The Group's drycleaning business,
is Britain's leading dry cleaner with approx 500 shops.
During the last 15 months the Company has taken steps to ensure that both the
capability and management capacity are in place to enable it to add on a
principal new service offering.
Chesterton International plc was fully listed on the London Stock Exchange until
it was taken private in June 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
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