Johnson Service Group acquires Fresh Linen for £12.5 million
Johnson Service Group has announced a year of strong strategic and operational performance in their trading update to the end of 2019.
Their £10 million investment plan in a new high volume linen plant in Leeds remains on target for opening in the Spring 2020, providing the business with extra processing capacity ahead of the busy summer months.
Their statement also confirmed the news that on 30 November 2019 JSG completed the acquisition of Fresh Linen Holdings Limited together with its trading subsidiary Fresh Linen Limited, for £12.5 million.
As reported in the accounts for the year ended 30 June 2019, Fresh Linen generated a revenue of £16.7 million and profit before taxation of £1.1 million.
The business, which has some 340 employees and operates from its freehold main site in Clacton-on-Sea and through a transport distribution hub in Rainham, London, regularly supplies over 900,000 items of linen a week, predominantly to hotels and gym clubs in the hospitality market in the South East of England.
The acquisition meets with their continuing growth strategy to increase the size and scale of hospitality services in the UK and extend their geographical reach as well as further diversifying the customer profile base within the Johnsons Hotel Linen portfolio.
Peter Egan, chief executive officer of JSG, commented: “This has been a strong trading period despite the general uncertainty in the UK economy. We have achieved consistent organic growth and, with this latest acquisition in the South East, are expanding into a new geographical area where we are currently under represented for servicing our high volume linen customers.
“We are delighted that 2020 will see the opening of the new plant in Leeds providing further capacity and are confident that with these new geographies, our established client base and operational expertise, we will continue to deliver future organic growth.
“We remain positive about the future prospects for the business and we expect to announce full year results slightly ahead of market expectations.”
Johnson Service Group has announced a year of strong strategic and operational performance in their trading update to the end of 2019.
Their £10 million investment plan in a new high volume linen plant in Leeds remains on target for opening in the Spring 2020, providing the business with extra processing capacity ahead of the busy summer months.
Their statement also confirmed the news that on 30 November 2019 JSG completed the acquisition of Fresh Linen Holdings Limited together with its trading subsidiary Fresh Linen Limited, for £12.5 million.
As reported in the accounts for the year ended 30 June 2019, Fresh Linen generated a revenue of £16.7 million and profit before taxation of £1.1 million.
The business, which has some 340 employees and operates from its freehold main site in Clacton-on-Sea and through a transport distribution hub in Rainham, London, regularly supplies over 900,000 items of linen a week, predominantly to hotels and gym clubs in the hospitality market in the South East of England.
The acquisition meets with their continuing growth strategy to increase the size and scale of hospitality services in the UK and extend their geographical reach as well as further diversifying the customer profile base within the Johnsons Hotel Linen portfolio.
Peter Egan, chief executive officer of JSG, commented: “This has been a strong trading period despite the general uncertainty in the UK economy. We have achieved consistent organic growth and, with this latest acquisition in the South East, are expanding into a new geographical area where we are currently under represented for servicing our high volume linen customers.
“We are delighted that 2020 will see the opening of the new plant in Leeds providing further capacity and are confident that with these new geographies, our established client base and operational expertise, we will continue to deliver future organic growth.
“We remain positive about the future prospects for the business and we expect to announce full year results slightly ahead of market expectations.”
Want to read more?
There are lots of ways to view articles from Laundry & Cleaning Today
- View the latest publication in full here
- View our publication archive
- Read featured articles from the LCT journalists for in-depth industry insights
Prefer to subscribe and receive a printed copy of Laundry & Cleaning Today? Click here
If you have a story to share or a general enquiry, call 0118 901 4471 or email info@laundryandcleaningtoday.co.uk
Sponsored
