Acquisition

Johnson Service Group PLC 04 January 2005 4 January 2005 Johnson Service Group PLC Acquisition of Dewhirst Corporate Clothing (DCC) Limited Johnson Service Group PLC ('Johnson') announces the acquisition of the corporatewear business of the Dewhirst Group Limited. Johnson will acquire, on a debt free basis, the entire issued share capital of Dewhirst Corporate Clothing (DCC) Limited ('Dewhirst') which will comprise only the corporatewear division following the transfer of its other trading activities elsewhere in the Dewhirst Group prior to purchase by Johnson. The consideration payable is £22.5 million in cash on completion, including £1.3 million for a freehold property, plus up to £1.25 million of deferred cash consideration dependent on the signing of specific additional customer contracts by Dewhirst within the next 12 months. Dewhirst provides corporatewear to a number of the UK's leading financial services providers and other businesses in the hotel and leisure sectors. The corporatewear division of Dewhirst had turnover and EBIT for the year ended January 2004 of £21.8 million and £2.8 million respectively with net assets at that date of £7.4 million. The acquisition is expected to be earnings enhancing in the current financial year. Johnson Group CEO Stuart Graham said: 'This acquisition complements our existing corporatewear businesses of CCM, Dimensions and Yaffy, the latter two having been acquired during 2004. We have increased our market penetration and service offering, with sales in this sector rising from around £20 million two years ago to a run rate in excess of £90 million.' David Toon, Managing Director of the Johnson Textile and Hospitality Services Division, added: 'We are now the clear market leader in the provision of clothing for people at work in the UK. The division comprises exciting and dynamic brands committed to delivering excellence in customer service and product quality. The strong management team will provide the platform for continued growth as well as an opportunity to move into the European market at the appropriate time.' Johnson will issue its pre-close trading statement on 12th January 2005. For further information, please contact: gcg hudson sandler Johnson Service Group PLC Sandrine Boussard Stuart Graham, CEO James Benjamin Jim Wilkinson, CFO Telephone: 020 7796 4133 Telephone: 0151 933 6161 Website: johnsonplc.com Notes to editors - The Johnson Service Group The Johnson Service Group is a support services business with two principle activities: Textile and Hospitality Services and Facilities Management. Over the last 2 years the Company has been extensively overhauled under the leadership of Chief Executive Stuart Graham and his strengthened management team. They have developed and grown the Group's core activities through a combination of strategic acquisitions and organic growth. Textile and Hospitality Services includes some of the industry's leading names. Johnsons Apparelmaster is Britain's leading workwear rental business; CCM specialises in the manufacture and sourcing of workplace garments; Dimensions is the country's leading supplier of corporatewear; Stalbridge Linen is Britain's leading supplier of linen and chefs' wear to the leisure, professional catering and corporate hospitality sectors; Johnson Hospitality Services is 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 drycleaning brand, and Sketchley, provide a nationwide network of circa 600 retail drycleaning shops. Jeeves of Belgravia provides an exclusive and bespoke drycleaning service within the London area. Johnson Workplace Management, provides a comprehensive range of services based on a unique business model. This focuses on management, property expertise and the provision of a wide range of support services to FTSE businesses, national companies and institutions. This information is provided by RNS The company news service from the London Stock Exchange
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