Johnson Services pays £3m for Jarvis maintenance contracts
DRY cleaning to facilities management group Johnson Services is to buy eight facilities management contracts for around £3m, from the administrators of Jarvis Plc.
The Runcorn-based company operates a dry cleaning chain, a textile division which rents out linen and workwear, and facilities mangement arm SGP Property & Facilities Management.
The group said the eight contracts and seven related special purpose companies will add 35% to SGP’s revenue in a full year and will significantly increase its presence in the PFI market.
The contracts provide services including catering, cleaning and maintenance, for specific schools, primary care trusts and local authorities.
It has already completed the purchase of three of the PFI contracts from the company, together with two related special purpose companies.
While under the management of Jarvis, these contracts generated revenues of £4m in the year to March 2010, employ 86 staff and each have over 15 years on the contract term remaining.
Johnson expects to complete the acquisition of a further five contracts, together with related special purpose companies, from Jarvis in the coming weeks.
These five contracts generated revenue of £6.5m in the year to March 2010, employ 160 staff and each have over 15 years on the contract term remaining.
