Johnson Service Group, a UK textile rental provider to the hospitality sector, has announced the acquisition of StarCountry Textile Limited, as the company finishes the year on a high.
JSG has taken over the linen business, based in Wrexham and operating in the North West and Midlands for over 50 years, to boost the reach of the company’s Stalbridge Linen brand.
StarCountry predominately supplies budget hotel chains, country house hotels, restaurants and catering establishments in the region and the acquisition will increase JSG’s processing capacity and the efficiency of the logistics network.
JSG took over the entire share capital of StarCounty, for a total cash consideration of £3.9m, on a debt free, cash free basis, including a freehold site valued at £0.9m.
The announcement comes on the back of JSG’s most recent trading update for the six months to 31 December 2017.
The Group has continued to trade well in the second half of the year, with results for the full financial year expected to be slightly ahead of management expectations.
Chris Sander, chief executive officer of JSG, said: “We are delighted with another period of strong trading. In addition, the acquisition of StarCounty announced today helps us further develop the business in line with our strategy, increasing our presence in the North West and the West Midlands and enhancing the quality of service we can offer our customers in the region.”