Acquisition of Shortridge expands K-Bro's geographic footprint in the
Shortridge is being acquired for consideration of £24.1 million (approximately
Shortridge is headquartered in
"While our original plans to grow our presence in the
"This is a great opportunity for us to diversify our customer base in the
"This is a good news story for Shortridge and our customers as we join the K-Bro family with the resources and the vision to help us grow the business further while continuing to look after the interests of our valued customer base. K-Bro's experience, coupled with Fishers' strong reputation and track record here in the
Transaction Highlights
- High-Quality Operator: Shortridge is a prestigious commercial laundry operator with a reputation for serving the needs of its customers well and represents the addition of a second, highly recognizable local brand in the
UK for K-Bro. - Adjacent Geographic Footprint: Two strategically located processing facilities and one distribution depot expand K-Bro's geographic footprint into the North West of
England . - Highly Diversified Customer Base: Shortridge services over 1,200 hospitality customers, including many local, independent businesses, with no customer representing more than 3% of revenue.
- Experienced Management and Shared Values: The experienced management team at Shortridge has significant industry experience and both K-Bro and Shortridge have shared values in 'putting people first', prioritizing customers, employees and all stakeholders.
- Well Positioned for Growth: Shortridge has attractive organic growth opportunities and K-Bro's vision includes supporting both existing and new customers. The acquisition creates a foundation to extend both Shortridge's and Fishers' services further south into the
UK while remaining vigilant for further acquisitive growth opportunities elsewhere in theUK .
Transaction Financing
The acquisition is being funded entirely from K-Bro's credit facility. K-Bro is committed to maintaining a flexible capital structure to support future acquisition and organic growth.
Legal Counsel
K-Bro is the largest owner and operator of laundry and linen processing facilities in
K-Bro currently operates ten processing facilities and two distribution centres under two distinctive brands, including
Since the early 1990's, Shortridge has operated as a family run laundry business, based in
It specialises in providing high quality laundry services to local independent hospitality businesses, including hotels, B&Bs, self-catering units and restaurants.
Fishers was established in 1900 and remained family owned up to 2003. Acquired by K-Bro in 2017 the company has invested significantly in its large, highly automated, laundries to become the leading laundry provider to large hotel chains operating in
The company has also pioneered the use of RFID technology with its own luxury linen brand to create a bespoke offering to some of
The company operates five sites in
Cupar – PrestonhallPerth Newcastle upon Tyne- Livingston
Coatbridge
This news release contains forward-looking information that represents internal expectations, estimates or beliefs concerning, among other things, future activities or future operating results and various components thereof. The use of any of the words "anticipate", "continue", "expect", "may", "will", "project", "should", "believe", and similar expressions suggesting future outcomes or events are intended to identify forward-looking information. Statements regarding such forward-looking information reflect management's current beliefs and are based on information currently available to management.
These statements are not guarantees of future performance and are based on management's estimates and assumptions that are subject to risks and uncertainties, which could cause K-Bro's actual performance and financial results in future periods to differ materially from the forward-looking information contained in this news release. These risks and uncertainties include, among other things: (i) risks associated with acquisitions, including (a) the possibility of undisclosed material liabilities, disputes and contingencies, (b) challenges or delays in integrating the targets (c) the diversion of management's time and focus from other business concerns, and (d) the use of resources that may be needed in other parts of our business; (ii) K-Bro's competitive environment; (iii) utility costs, minimum wage legislation and labour costs; (iv) K-Bro's dependence on long-term contracts with the associated renewal risk and the risks associated with maintaining short term contracts which are characteristic of the Shortridge business ; (v) increased capital expenditure requirements, including any upgrades to the Shortridge facilities and increased interest expense associated with drawdowns under K-Bro's credit facility to satisfy the Shortridge purchase price and anticipated capital expenditures; (vi) reliance on key personnel; (vii) changing trends in government outsourcing; (viii) changes or proposed changes to minimum wage laws in
All forward-looking information in this news release is qualified by these cautionary statements. Forward-looking information in this news release is presented only as of the date made. Except as required by law, the Corporation disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
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