K-Bro Linen Inc., Edmonton, Alberta, Canada, announced that it has signed a share-purchase agreement with STAR Capital Partnership LLP to acquire 100% of UK-based Star Mayan Ltd. for a cash purchase price of £107.2 million (approximately $143.9 million), on a cash-free, debt-free basis, including a normalized level of working capital.
The acquisition complements K-Bro’s existing UK businesses, Fishers and Shortridge. K-Bro’s combined UK platform creates a national footprint in the UK’s £1.6 billion ($2.1 billion) commercial laundry and textile rental market.
“I am thrilled to announce our transformative acquisition of Star Mayan, K-Bro’s largest acquisition in our history,” said Linda McCurdy, director, president and CEO of K-Bro. “The acquisition, combined with K-Bro’s existing UK businesses, Fishers and Shortridge, creates a top three national platform in the attractive UK market serving both healthcare and hospitality customers.”
Star Mayan is an investment and holding company which owns 100% interests in three operating businesses: Synergy Health Managed Services Ltd.; Grosvenor Contracts (London) Ltd.; and Aeroserve (MSP) Ltd. and Aeroserve Euro Ltd., jointly referred to as Aeroserve Linen Services. Star Mayan, doing business as Synergy, Grosvenor and AeroServe, is a leading commercial laundry business in England, serving the healthcare and hospitality markets. The business has seven operating facilities strategically located across England: Bermondsey, Derby, Dunstable, Sheffield, Slough (two) and St. Helens, in addition to a distribution depot in Manchester. Star Mayan has a diversified customer base including hospitals, healthcare facilities, NHS (National Health Service UK) trusts, community trusts, airlines, marine ferries and hospitality providers.
“We entered the UK through our acquisition of Fishers in 2017 with a vision to build a national platform for growth in a large, fragmented and attractive market,” McCurdy said. “Today’s acquisition adds a leading UK-based healthcare-focused commercial laundry business, enhancing our revenue diversification by mix and geography. K-Bro is a leader in healthcare with over half a century of experience as an essential service provider and we’re excited to further support existing and new customers. Star Mayan and K-Bro have shared values in putting people first, being dependable partners and environmental stewardship, and we’re excited to welcome the team to the K-Bro family.”
The acquisition is expected to close in early June, subject to the satisfaction of limited closing conditions.
Sign Up For Our Newsletter
Receive the latest updates on the linen, uniform and facility services industry from TRSA delivered straight to your inbox.
