Acquisition

Johnson Service Group PLC 15 July 2004 15 July 2004 Johnson Service Group PLC Acquisition of UK's leading Corporatewear Supplier Johnson Service Group PLC ('Johnson') announces the acquisition, on a debt free basis, of the entire issued share capital of Dimensions Holdings Limited and subsidiary companies ('Dimensions'), the UK's leading corporatewear supplier. The vendors are Gresham LLP, the private equity firm, and the Dimensions' management team who will remain with the business. The consideration is £21.7 million in cash and £2.3 million in loan notes on completion plus deferred consideration of up to £3.4 million, payable in cash to the management team over the next two years dependent on the achievement of certain profit targets. It is estimated that the actual payout will be circa £2.5 million. Dimensions was originally acquired by Johnson as part of the Semara acquisition in February 2000 and, in accordance with the strategy of the Group at that time, subsequently sold to Gresham LLP, the private equity firm, and management in December 2000. Dimensions supplies corporatewear to a number of the UK's leading retail businesses and has been expanding its offering into the travel, finance, hotels and leisure sectors. It will continue to trade under the well known Dimensions brand name and will operate within Johnson as a stand alone business. Dimensions will develop ties with Johnson's existing clothing division and will pursue opportunities and synergies where they exist. Dimensions' turnover and profit before taxation for the year ended June 2003 was £27.5 million and £1.4 million respectively with net assets at that date of £5.7 million. Turnover and operating profit in the eleven months to May 2004, as derived from the unaudited management accounts, were £25.4 million and £2.5 million respectively. Johnson CEO Stuart Graham said: 'Corporatewear is an expanding area of the textile services market and the acquisition of Dimensions represents a quality opportunity to increase the range of services we offer to our customers. Further, the Dimensions model is certainly transportable and I believe we can over time move into the very large and, as yet equally unconsolidated, market in Europe. The acquisition is entirely in line with our strategy and with circa 10% of the market there is good room for growth'. David Toon, Managing Director of the Johnson Textile and Hospitality Services Division, added: 'This exciting acquisition provides Johnson with the clear market leadership in the provision of both corporatewear and workwear in the UK and further strengthens our capability and capacity'. Simon Hughes, architect of Dimensions' growth over the last decade, who will continue to lead the business said: 'I am pleased to be rejoining Johnson at this time. Dimensions has become the leading provider of designed clothing for people at work in the last few years and it was vital to find an organisation that shared our passion for customer service, ambition and vision for the future. Johnson has changed significantly since we left the Group in 2000. Their clear focus and strategy has impressed me enormously and this was clearly the best home for Dimensions; especially with an eye to the future'. On 7th July Johnson issued its pre-close trading statement commenting that all businesses have performed to expectations in the first 6 months of the year. For further information, please contact: gcg hudson sandler Johnson Service Group PLC James Benjamin Stuart Graham, CEO Telephone: 020 7796 4133 Mike Sutton, CFO Telephone: 0151 933 6161 Website: johnsonplc.com Notes to editors - The Johnson Service Group The Johnson Service Group has two principle activities: the traditional businesses focusing on textiles and the recently established facilities management operation. Over the last 2 years these core activities have been developed and grown through a series of strategic acquisitions. The Company has been extensively overhauled under the new Chief Executive Stuart Graham. Textile related support services include Johnsons Apparelmaster, Britain's leading launderer and renter of workwear; CCM, a manufacturer and sourcer of workplace garments; Dimensions, the leading supplier of corporatewear; Stalbridge Linen, Britain's leading linen supplier to the leisure, professional catering and corporate hospitality sector; Johnson Hospitality Services, recently acquired and expanded, the British market leader in the hire of catering equipment, hospitality furniture and related items to sporting, entertainment and similar events. Johnsons Cleaners, Britain's No. 1 dry cleaning brand, and the newly acquired Sketchley provide a nationwide network of circa 620 retail dry cleaning shops. Jeeves of Belgravia provides an exclusive and bespoke dry cleaning service within the London area. The newly established facilities management division, through Johnson Workplace Management, provides a fully comprehensive range of services, utilising a unique business model focusing on management, property expertise and the provision of a wide range of support services to FTSE and national companies and institutions. This information is provided by RNS The company news service from the London Stock Exchange
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