Johnson targets hotel sector expansion with £15m acquisition

Johnson Service Group (JSG), the Cheshire-based textile services firm, has acquired Zip Textiles (Services) Limited in a multi-million pound deal.

Runcorn-headquartered JSG, the firm behind the Johnsons brand of dry cleaning stores, snapped up the entire share capital of Zip for £15m, in addition to a debt of £2.7m to finance recently installed processing equipment.

Zip, which provides services to the hotel and leisure sector from a processing facility in Birmingham, expands JSG’s production capacity and operational efficiencies in central England.

JSG CEO Chris Sander said: “Zip is an extremely well invested business that offers good synergies with Bourne, geographical reach and scope to increase processing capacity significantly.”

The deal follows a number of acquisitions made by Johnson last year, including the purchase of linen hire and laundry business Ashbon Services Limited for £6.25m in November.

Mr Sander continued: “Having expanded our hotel and restaurant divisions through the acquisitions of Ashbon and London Linen, the addition of Zip to the JSG family marks the latest milestone in our growth strategy.”

Zip, which achieved a revenue of £7m in the 12 months to January 31, is expected to be immediately earnings enhancing.

Sue Russell and Richard McKay of commercial law firm Hill Dickinson acted on behalf of Johnson Service Group during the transaction.

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