Brooks Service Group PLC
10 October 2000
Brooks Service Group Plc announces that on 9 October 2000 it exchanged
contracts to acquire 99.48 per cent. of the entire issued share capital of
County Luxdon Laundry Limited. The business, which is based in Sunderland,
County Durham, was established in 1938 and provides textile rental services to
hotels and restaurants in the North East of England. The consideration
payable in cash on Completion is £200,000, which will be held in escrow until
15 November pending the agreement of Completion Accounts made up to 6 October
2000. In addition, Brooks is assuming debt in the business of approximately
£1.1 million. The net assets of County Luxdon at 31 July 2000 were £203,071.
The business, which last year turned over £1.4 million, is currently not
profitable but is expected to break even in 2001. The acquisition provides
Brooks with capacity in the North East of England and further strengthens the
Company's core business of supply of linen rental.
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