Johnson snaps up linens firm

CHESHIRE company Johnson Service Group, the laundry services specialist, has snapped up a linen hire firm in a deal worth more than £6m.

JSG is buying  Lincolnshire-based Ashbon Services for £6.25m , on a debt free, cash free basis.

The Preston Brook company said Ashbon, which serves the catering, hotel and leisure industries from its processing plant in Grantham,  complements its existing Stalbridge, Bourne and London Linen businesses, providing operational efficiencies and additional production capacity for the Midlands and North.

It added; “The acquisition is expected to be immediately earnings enhancing and follows JSG’s successful acquisitions of London Linen earlier this year and Bourne in 2014.  Ashbon reported revenue of £4.5m for the year to October 31 2014 and has a history of year on year revenue growth.”

Chief executive  Chris Sander, added: “Ashbon is a strong business and it shares our core values of quality, reliability and service.

“Its 20,000 sq. ft. processing plant perfectly complements our Stalbridge, Bourne and London Linen operations, and will enable us to improve the service we offer to our customers in the Midlands and North of England.

“This acquisition furthers our strategy of buying businesses which can be integrated easily into the wider Johnson Service Group.”