OFT approves Johnson’s Apparelmaster deal

THE Office of Fair Trading has given the green light to Johnson Service Group’s £6m acquisition of Canon Textile care.

After scrutinising the deal – which will add around £16.5m to the Cheshire company’s Apparelmaster division – the OFT said it had decided not to refer the deal to the Competition Comission.

Although in its judgement the OFT did raise some concerns over the
supplu of workwear maintenance services, particularly in the Birmingham area, it ruled there is still sufficient competition, for the deal to go ahead.

It said: “The OFT considers that there is no realistic prospect of a substantial lessening of competition arising from the merger in relation to the supply of workwear maintenance services, and overall in the supply of textile maintenance services at a local or national level.”

Cannon currently operates its textile rental business from laundries based in Glasgow, Manchester, Bristol, Newmarket and Balham, south London, with additional depots in Gateshead and Birmingham.