JSG strengthens growth strategy with acquisition and new plant

Johnson Service Group (JSG) – a UK-based textile rental services provider – recently released a trading update for the year that ended on 31 December 2019.

The Group confirmed the completion of its acquisition of the entire issued share capital of Fresh Linen Holdings (Fresh), together with its trading subsidiary Fresh Linen Limited. The amount involved is £12.5 million on a debt free, cash free basis and subject to an adjustment for normalised working capital. The consideration includes the freehold site. JSG stated that the acquisition meets its growth strategy to increase size and scale of its hospitality services in the UK. The acquisition also complies with the company’s intention to extend geographically. Besides it further diversifies the customer profile base within the Hotel Linen portfolio.

The company’s £10.0 million investment plan for a new high volume linen plant in Leeds, remains on target. The plant is to be opened in the Spring of 2020. The location will provide extra processing capacity ahead of the busy summer months. In the update, the group remains positive about the future prospects for the business and expects to announce full year results on Monday 2 March. The results are expected to be slightly ahead of market expectations.