K-Bro Linen Inc., Edmonton, Alberta, Canada, recently announced that it has completed its acquisition of Buanderie C.M. Inc. (“C.M.”) for an enterprise value of $12 million, on a cash-free, debt-free basis. The transaction includes the real estate for C.M.’s processing and storage facilities located in North Montréal.
K-Bro funded the acquisition entirely from its syndicated revolving credit facility and, after synergies, it’s expected to be accretive to the corporation.
C.M. is a private laundry and linen operator serving the healthcare market with annual revenues of approximately $7.3 million. The acquisition will enable K-Bro to operate with two facilities in Montréal to service its growing healthcare and hospitality business.
“K-Bro is proud to serve Quebec and we are excited to further diversify our customer base in the province,” said Linda McCurdy, president and CEO at K-Bro. “C.M. has been serving top-tier healthcare customers in the attractive Montréal market for decades. Our acquisition of C.M. expands K-Bro’s healthcare customer base, increases healthcare volumes, adds additional healthcare capacity and supports significant future growth opportunities.
“The C.M. acquisition aligns with our strategy of acquiring high-quality operators. We’re excited about our outlook and have an active M&A pipeline. K-Bro remains well positioned from a balance sheet and liquidity perspective and will continue to be disciplined as we evaluate acquisitions.”
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