Johnson Service exits facilities management with £32m sell-off
JOHNSON Service Group is to sell its facilities management business in a deal worth more than £32m, leaving it able to focus on textile services.
The Cheshire-based company is selling to Bell Rock Bidco – an acquisition vehicle backed by private equity firm Lyceum Capital Partners.
After transaction costs and adjustments for working capital JSG will pocket £28m, with a further £2.2m deferred. The proceeds will be used to reduce the company’s debt.
The total external revenue, including costs recharged to customers, of the FM activities for the year ended 31 December 2012 was £52.3m and adjusted operating profit was £4.5m.
The FM activities are undertaken within the Johnson Workplace Management subsidiary and largely comprise SGP Property & Facilities Management and six related special surpose companies, which undertake certain PFI contracts.
Following the Disposal JSG will continue to operate through Johnsons Apparelmaster (textile rental), Stalbridge (premium linen rental) and Johnson Cleaners and Jeeves of Belgravia (drycleaning).
John Talbot, executive chairman of JSG, said: “”I am very pleased with this disposal which effectively completes the long term plan of reorganising the group, refocusing the business on its original core market in textile services and achieving normalised borrowing levels.
“There is a major opportunity for continued expansion within textile services based on a strong financial and operational platform.”
