Acquisition

Johnson Service Group PLC 14 October 2003 14 October 2003 Johnson Service Group PLC Expansion of Dry Cleaning Business. Johnson Service Group PLC ('Johnson') announces the expansion of its dry cleaning business through two acquisitions: the retail dry cleaning division of Brooks Service Group plc and Jeeves International Ltd. Johnson Cleaners Johnson has acquired the retail dry cleaning division of Brooks Service Group plc for a consideration of £1.85m in cash on completion. Brooks have 38 branches in southern England where Johnson is not widely recognised and therefore provides an excellent strategic and geographical fit. The business will be rebranded as soon as is practical and all shops will operate on the Johnson Cleaners business model. Johnson Cleaners will now be represented at some 530 locations. The turnover of the shops acquired was £4.6m for the year ended December 2002, with net assets amounting to £1m. Jeeves Jeeves of Belgravia, 'London's Finest Dry Cleaner', which was purchased by Johnson in May 2003, has acquired the whole of the remaining share capital of Jeeves International from Sydney Jacob for an undisclosed sum. Jeeves of Belgravia already holds a 9.75% stake in Jeeves International. Jeeves International is a franchise of high-grade dry cleaning services trading outside the UK, with negligible net assets. Licensees are located in New York, Hong Kong, Istanbul, Jakarta and Jeddah. Several licencing opportunities in other locations are presently under discussion. Jeeves licensees are either substantial local companies or well resourced individuals. Johnson will now develop the brand and business internationally. Martin Sloots, presently the MD of Jeeves of Belgravia, will become MD of both companies. Sydney Jacob, the original founder of Jeeves of Belgravia and Jeeves International will become a Director of both companies. Johnson CEO, Stuart Graham said, 'These two acquisitions enable us to strengthen our position as the market leader in the dry cleaning business. The Brooks acquisition fits well with our existing portfolio and gives us increased coverage in the South where we have been under-represented. There still however remains scope to significantly expand the Johnson brand into the Greater London area. The national coverage now achieved will provide wider opportunities both with existing business partners and other commercial organisations where true national coverage will be of mutual benefit. Acquiring the internationally recognised Jeeves brand will give us potential to expand that brand globally.' 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. As a result of the strategic review of the business that began 15 months ago the Group has realigned its businesses and strengthened its management team to enable deeper penetration into the current core activities and to enter new areas of the business services sector. Yesterday Johnson announced the acquisition of a facilities management business which has provided an additional dimension to the Group. This information is provided by RNS The company news service from the London Stock Exchange
UK 100