Textile company Johnson Service Group (JSG) has acquired London Linen Supply, which supplies table linen and chefs’ wear to the restaurant, catering and hospitality markets, for £65.4m. The group plans to place 30m new shares to raise £21.1m to help finance the purchase. It has also agreed a £100m revolving credit facility and a £20m short-term loan with its existing banks.
The acquisition is in line with the group’s strategy to scale down its high-street dry cleaning business and increase its focus on textile rental. The purchase makes Johnson the UK’s largest provider in the restaurant-and-catering linen sector and brings with it clients including Jamie Oliver and The Wolseley. It also provides the group with a processing base closer to the London market.
