Acquisition

Johnson Service Group PLC 09 December 2003 9 December 2003 JOHNSON SERVICE GROUP PLC ACQUIRES ALEX REID AND ENVIRONMENTAL PEST CONTROL Alex Reid Limited - Leading sales and distribution business Johnson Service Group PLC (Johnson) announces that it has acquired the whole of the issued share capital of Alex Reid Limited ('Alex Reid'), the UK's leading sales and distribution business to the clothes care market. The consideration is £4.3m in cash on completion with deferred consideration of £0.5m payable in December 2004 and up to a further £0.5m payable in each of April 2005 and February 2006 dependant on the achievement of certain turnover and profit targets. The existing management of Alex Reid will remain with the business and it will continue to trade under its well-established brand name, as a stand-alone business unit. Alex Reid's turnover and profit before taxation for the year ended 31st December 2002 were £13.0m and £0.4m respectively and net assets at that date were £1.6m. The acquisition is expected to be immediately earnings enhancing, before the benefit of identified cost savings. This acquisition also delivers an immediate 'route to market' for GreenEarth, the new silicone based process, for which Johnson has recently secured the exclusive licence within the UK and Ireland. Johnson CEO Stuart Graham said 'This acquisition is in line with our strategy of strengthening our position as market leader in each of our businesses. Alex Reid has supplied Johnson Group companies for a number of years and we have been impressed with their reputation for proactive product development. With our backing this can be developed significantly in the future. The technology transfer synergies, for example GreenEarth, that the deal creates can only be good news for all concerned and the textile care sector as a whole. Through Alex Reid we can continue to lead and ensure the industry in its entirety can benefit from environmental and quality standards needed to meet the predicted changes in working practices. Alex Reid is well placed to drive this important development.' Alex Reid MD, Tom Elliot, said 'We are delighted to be part of Johnson which is by far our largest customer and has a deep understanding of our business. Our Customers are adapting to changing consumer needs, and we as the market leader want to be at the forefront of creating new sources of growth and support for all of our existing and future customers in building increased value.' He added 'With the support of Johnson, we can not only continue to supply our customers in an efficient manner, but we can also dedicate more time and management effort into developing new products and technologies enabling organic growth. GreenEarth is particularly exciting and with Johnson's support we can look to replicating our business model in Europe.' Environmental Pest Control Services Limited (EPC) Johnson has also acquired EPC for an initial consideration of £0.8m in cash plus additional consideration of up to £0.3m based on the annual profit of the company over the next five years. EPC will enable the recently acquired Johnson Workplace Management business to expand its range of directly provided and value adding services. Note to Editors: Johnson Service Group is Britain's market leader in workwear rental. Other activities include the manufacture and sourcing of workwear garments and related apparel. The Group's drycleaning business is Britain's leading drycleaner with over 530 shops. Johnson Workplace Management Ltd is a leading provider of a wide range of facilities management services and has a substantial client base including blue chip companies and central government departments. Alex Reid is the UK's leading sales and distribution business to the clothes care market supplying a full range of packaging, consumables and detergents. For further information, please contact: Hudson Sandler Johnson Service Group PLC Michael Sandler/Wendy Baker Stuart Graham, CEO Telephone 020 7796 4133 Mike Sutton, CFO Telephone 0151 933 6161 This information is provided by RNS The company news service from the London Stock Exchange
UK 100