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Johnson Service Group acquires Zip Textiles
04
Feb '16
UK based textile services group Johnson Service Group (JSG) said it has fully acquired Zip Textiles (Services) for a cash consideration of £15.0 million on a debt free and cash free basis.

“Furthermore, as part of the deal, JSG has also taken over additional debt of £2.7 million in relation to the financing of recently installed processing equipment by Zip Textiles,” a press release from JSG revealed.

From its processing plant in Birmingham, Zip services the high volume hotel and leisure sectors and this complements JSG's existing Bourne business.

The acquisition will help JSG in providing geographical reach, operational efficiencies and additional production capacity for central England, with the potential to expand this further.

According to JSG, the deal will immediately enhance JSG's earnings, but the main focus of this buyout is to improve operational capacity and extend the company's reach of existing hotel customers.

The UK based textile services provider had earlier successful acquired Ashbon and London Linen last year.

For the year ending January 31, 2015, Zip had reported revenues of £7.0 million and operates from a freehold property with a book value of £4.4 million.

JSG CEO Chris Sander said, “Zip is an extremely well invested business that offers good synergies with Bourne, geographical reach and scope to increase processing capacity significantly.”

“Having expanded our hotel and restaurant divisions through the acquisitions of Ashbon and London Linen, the addition of Zip to the JSG family marks the latest milestone in our growth strategy,” Sander added.

The Johnson Service Group's origins can be traced back to 1780 and its traditional textile-related businesses grew through the progressive amalgamation of a number of regional companies.

These include Pullars, Zernys, Bollom, Crockatts, Smiths, Kneels, Harris Clean, Hartonclean and Johnsons.

It entered the market for hospitality services through the acquisition of Stalbridge Linen Services in 1995, and achieved UK market leadership in textile rental through the acquisition of the Semara Group in 2000.

Following a strategic review in 2002, JSG disposed of a number of underperforming and non-core businesses, including its Irish textile rental businesses and washroom services.

At the same time, the company increased its exposure to growing markets with the acquisition of Workplace Management, which addresses the rapidly growing market for facilities management. (AR)

Fibre2Fashion News Desk – India

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