K-Bro Linen Inc. acquired Shortridge Ltd for £26.10 million.
April 30, 2024
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K-Bro Linen Inc. (TSX:KBL) acquired Shortridge Ltd for £26.10 million on April 30, 2024. Shortridge is being acquired for consideration of £24.1 million, on a cash-free, debt free basis (subject to customary conditions, including certain escrows) and with a further potential earn-out of £2.0 million for achieving certain targets for the 12 months through September 2024. Shortridge's last twelve months' revenue for the period ended March 31, 2024 was approximately £12.5 million. The transaction includes the freehold and leasehold real estate for Shortridge's laundry processing facilities. The acquisition is being funded entirely from K-Bro's recently increased syndicated debt facility and is expected to be accretive to the Corporation. Burness Paull LLP and Stikeman Elliott LLP are acting as legal advisors to K-Bro.
K-Bro Linen Inc. (TSX:KBL) completed the acquisition of Shortridge Ltd on April 30, 2024.
K-Bro Linen Inc. is a Canada-based owner and operator of laundry and linen processing facilities. The Company provides laundry and textile rental services in Scotland and the Northeast of England. The Company and its wholly owned subsidiaries operate across Canada and the United Kingdom, providing a range of linen services to healthcare institutions, hotels and other commercial accounts that include the processing, management and distribution of general linen and operating room linen. It operates through two divisions. Canadian division provides laundry and linen services to the healthcare and hospitality sectors through 10 operating divisions located in Vancouver, Victoria, Calgary, Edmonton, Regina, Toronto, Montreal, and Quebec City. UK division provides laundry and linen services primarily to the hospitality sector, with other sectors, including healthcare, manufacturing and pharmaceuticals, through four sites which are located in Perth, Newcastle, Livingston and Coatbridge.