Johnson Service (JSG) has acquired Afonwen Laundry, a hotel linen supplier operating from laundry facilities in Reading, Cardiff and Pwllheli, for a consideration of £52.6m. JSG now intends to place more than 33m new shares in a bid to raise around £28.7m, and has secured an increased financing package of £150m with its existing banks.
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The acquisition is in accordance with the group's strategic rationale centred on the continued growth of the budget hotel sector in the UK. Within this high-volume linen sector, JSG has now secured 730 clients, including Premier Inn, ibis, Novotel, Radisson Blu, Holiday Inn and Travelodge, and processes an average of 4,865,000 items a week.