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
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