Acquisition of leading hospitality and events hire business
Sat, 16 Dec 2006
Johnson Service Group PLC (Johnson) announces that it has acquired the
whole of the issued share capital of Jongor North Limited and as part
of a separate, concurrent transaction with appointed receivers, Johnson
has also acquired the trade and assets of Jongor Events Limited. The
combined business will be a market leader in the UK in the hire of
catering equipment, hospitality furniture and related items.
Johnson
has identified this sector as highly fragmented and believes there is
significant opportunity now to create a truly national business. As
well as a strategic entry into this market, this acquisition reinforces
the leading market position already held by the Group’s complementary
business, Stalbridge.
The maximum consideration is £2.4m payable
in cash. Net assets acquired, based on the last audited accounts,
amount to approximately £4.4m. The existing operational management will
remain with the business and it will trade under the new brand of
‘Johnson Hospitality Services Limited’.
Johnson CEO, Stuart
Graham, said: "Our Stalbridge Linen business is a leading participant
in the events market. During our strategic review process in 2003 we
identified opportunities to extend our product and service offering to
the longstanding and excellent relationships we have with those
catering customers who dominate this sector. This acquisition also
affords synergies, given that both Stalbridge and this new business
typically work alongside each other on a regular basis". He added "Both
Stalbridge and our new brand ’Johnson Hospitality Services’ have very
similar operational, customer service and back office practices.
Through shared administration and efficiencies this addition to the
portfolio of Johnson Service Group brands will present immediate
benefits to the Group."
Johnson Hospitality Services MD Rupert
Higgins (formerly MD of Jongor North) said "Stalbridge Linen and the
acquired business are familiar faces at most of the UK’s prestigious
events. Together, and with the support of Johnson, we can not only
combine forces at an operational level but also broaden and extend the
range of services into the combined customer base. He added ‘’ the
similarity in working practices is striking and presents significant
opportunities to build value almost immediately."
Enquiries:
Johnson Service Group PLC
Mike Sutton, CFO
Tel: 0151 933 6161
Hudson Sandler
Wendy Baker
Tel: 020 7796 4133