Fife company acquired
Fishers in £35m sale to Canada-based K-Bro Linen
Michael Jones: deal takes Fishers to next level
Fishers Laundry Group has been acquired by K-Bro Linen Inc, the largest provider of laundry and linen services in Canada, in a deal worth £35 million.
K-Bro will buy parent company, Fishers Topco Limited, from its major shareholder, the private equity firm, Caird Capital, and a number of individual minority shareholders.
There is an additional earn-out payment based on full-year EBITDA. The transaction is expected to complete on 27 November.
K-Bro plans to use Fishers as a platform to build its presence in the UK commercial laundry and textile rental market, organically and through further acquisition.
Fishers will operate as a standalone, wholly owned subsidiary of K-Bro and will retain its headquarters in Cupar, Fife. The Fishers management team will remain with the business and there are no job losses.
It employs 800 staff across seven sites in Scotland and the North East of England and provides commercial laundry and textile rental services principally to the hospitality sector but also to a range of other sectors including healthcare, manufacturing and pharmaceutical.
Headquartered in Edmonton, Alberta, K-Bro is listed on the Toronto Stock Exchange and employs more than 1,600 staff in nine processing facilities and two distribution centres in 10 cities across Canada.
About 75% of its business comes from long-term healthcare contracts with the remainder of its revenues coming from the hotel sector and other commercial contracts.
Advisers were Pwc corporate finance, together with legal firms Dickson Minto and Vialex.
Michael Jones, managing director of Fishers, said: “This is great news for Fishers as it brings a new owner for the business with the resources, experience and ambition to take Fishers to the next level.
“I am confident that, as part of K-Bro, Fishers will thrive and I look forward to drawing on K-Bro’s experience, particularly in the Canadian healthcare sector, to help us grow the Fishers business further here in the UK.”
Linda McCurdy, president and chief executive, at K-Bro, said: “We are very excited to add the Fishers platform as K-Bro’s first acquisition outside of Canada.
“The UK linen hospitality market is mature, but still highly fragmented, and we expect to leverage Fishers’ leading market position, experienced local management team, entrenched customer relationships and proven track record of stable and profitable operations to take advantage of the significant organic growth and consolidation opportunities available to us, similar to what we have achieved in Canada.”