Member Article

Johnson Group sells off facilities management for £32m

Johnson Service Group is selling its facilities management arm in a deal worth more than £32m, to focus on its extile services. The company, based in Preston Brook in Cheshire, is selling to Bell Rock Bidco, an acquisition vehicle backed by private equity firm Lyceum Capital Partners.

After adjustments and costs, initial net proceeds will be about £28m with up to a further £2.2m of deferred consideration potentially receivable.

The total external revenue, including costs recharged to customers, of the facilities management 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 and Facilities Management and six related special 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.”

This was posted in Bdaily's Members' News section by Simon Malia .