K-Bro Linen Inc., Edmonton, Alberta, Canada, recently acquired Shortridge Ltd., a high-end hospitality laundry provider based in Northwest England, expanding K-Bro’s geographic footprint in the £1.4 billion ($1.76 billion) UK commercial laundry and textile rental market. K-Bro also owns Fishers Laundry Group, the commercial laundry and textile rental provider covering Scotland and Northeast England, which it acquired in 2017.
Shortridge is headquartered in Northwest England, with laundry processing sites in Lillyhall and Dumfries, and a distribution center in Darlington. Shortridge is a long-established and respected laundry company and K-Bro plans to retain its branding. Its experienced management team will remain with the business and K-Bro intends to retain Shortridge’s employees across its three sites.
“While our original plans to grow our presence in the UK were interrupted by the COVID pandemic, we have stayed on the alert for further growth opportunities in the UK, and I am excited by the potential that this acquisition presents for us and for Shortridge’s customers,” said Linda McCurdy, president and CEO of K-Bro. “We share the same values as Shortridge, so the cultural fit is strong and the business has found a good home as part of the K-Bro family.
“This is a great opportunity for us to diversify our customer base in the UK and to position our combined UK business for more growth as we look to extend K-Bro’s geographic reach further south into the UK.”
Shortridge is being acquired for consideration of £24.1 million ($30.2 million), on a cash-free, debt-free basis (subject to customary conditions, including certain escrows) and with a further potential earn-out of £2 million ($2.5 million) for achieving certain targets for the 12 months through Sept. 2024. Shortridge’s last 12 months’ revenue for the period ended March 31 was approximately £12.5 million ($15.7 million). The transaction includes the freehold and leasehold real estate for Shortridge’s laundry processing facilities. K-Bro is funding the acquisition entirely from the company’s recently increased syndicated debt facility and it is expected to be accretive to the corporation.
“This is a good news story for Shortridge and our customers as we join the K-Bro family with the resources and the vision to help us grow the business further while continuing to look after the interests of our valued customer base,” said Peter Semple, Shortridge business director. “K-Bro’s experience, coupled with Fishers’ strong reputation and track record here in the UK, make for a formidable team and we can look forward to an exciting future together.”
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