K-Bro Closes Paranet Acquisition

K-Bro Linen Inc., Edmonton, Alberta, Canada, recently announced that it completed its acquisition of Buanderie Para-Net (Paranet), according to a news release.

K-Bro completed the transaction for an enterprise value of $11.5 million and a potential earnout of $1.9 million. Paranet is a private laundry and linen services company for the Quebec City healthcare and hospitality markets. The purchase price will be satisfied by drawing down on K-Bro’s revolving credit facility.

“With continued momentum in our business, we have been refocusing on strategic acquisitions and have an active M&A pipeline,” said Linda McCurdy, President and CEO at K-Bro. “The Paranet acquisition is another example of our strategy of acquiring high-quality operators with leading market positions, enabling K-Bro to grow market share in key regions. The acquisition also provides us with additional operating efficiencies, capital expenditure synergies and significant growth capabilities. We remain well positioned from a balance sheet and liquidity perspective, and will continue to be disciplined as we evaluate acquisitions.”