Acquisition

Johnson Service Group PLC 16 December 2003 16 December 2003 JOHNSON SERVICE GROUP PLC ACQUIRES LEADING HOSPITALITY AND EVENTS HIRE BUSINESS Johnson Service Group PLC (Johnson) announces that it has acquired the whole of the issued share capital of Jongor North Limited and as part of a separate, concurrent transaction with appointed receivers, Johnson has also acquired the trade and assets of Jongor Events Limited. The combined business will be a market leader in the UK in the hire of catering equipment, hospitality furniture and related items. Johnson has identified this sector as highly fragmented and believes there is significant opportunity now to create a truly national business. As well as a strategic entry into this market, this acquisition reinforces the leading market position already held by the Group's complementary business, Stalbridge . The maximum consideration is £2.4m payable in cash. Net assets acquired, based on the last audited accounts, amount to approximately £4.4m. The existing operational management will remain with the business and it will trade under the new brand of 'Johnson Hospitality Services Limited'. Johnson CEO, Stuart Graham, said: 'Our Stalbridge Linen business is a leading participant in the events market. During our strategic review process in 2003 we identified opportunities to extend our product and service offering to the longstanding and excellent relationships we have with those catering customers who dominate this sector. This acquisition also affords synergies, given that both Stalbridge and this new business typically work alongside each other on a regular basis.'' He added ''Both Stalbridge and our new brand 'Johnson Hospitality Services' have very similar operational, customer service and back office practices. Through shared administration and efficiencies this addition to the portfolio of Johnson Service Group brands will present immediate benefits to the Group.' Johnson Hospitality Services MD Rupert Higgins (formerly MD of Jongor North) said 'Stalbridge Linen and the acquired business are familiar faces at most of the UK's prestigious events. Together, and with the support of Johnson, we can not only combine forces at an operational level but also broaden and extend the range of services into the combined customer base. He added '' the similarity in working practices is striking and presents significant opportunities to build value almost immediately.' -ENDS- Note to Editors: Johnson Service Group is Britain's market leader in workwear rental as well a manufacturer and sourcer of workwear garments and related apparel. Stalbridge Linen is UK market leader in the leisure, professional catering and corporate entertainment sectors. The Group's dry-cleaning 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. For further information, please contact: Hudson Sandler Michael Sandler/Wendy Baker Telephone 020 7796 4133 or Johnson Service Group PLC 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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