Johnson Service Group (JSG), the Cheshire-based textile services firm behind the Johnsons brand of dry cleaning stores, has acquired Zip Textiles Limited, a provider to the hotel sector, in a multi-million pound deal.
JSG has bought the entire share capital of Zip for £15m, in addition to a debt of £2.7m to finance recently installed processing equipment.
Zip provides services to the hotel and leisure sector from a facility in Birmingham and will now expand JSG’s reach in central England as well as boost its reputation within the hospitality industry.
JSG 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.
JSG CEO Chris 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 revenue of £7m in the 12 months to January 31, is expected to be immediately earnings enhancing.