K-Bro Unveils New, ‘Upsized’ Revolving Credit Facility
K-Bro Linen Inc., Edmonton, Alberta, Canada, has announced an agreement to enter into a three-year, $175 million revolving credit facility, according to a news release. This new credit access will facilitate K-Bro’s investments in both organic growth and acquisitions aimed at expanding its healthcare, hospitality and other services in Canada and the United Kingdom (UK).
The K-Bro credit agreement features Toronto-Dominion Bank (TD) as the lead arranger, sole book runner and administrative agent. The National Bank of Canada and the Canadian Western Bank also are serving as lenders, the release said. The credit facility replaces K-Bro’s existing $125 million revolving credit facility with TD.
K-Bro President and CEO Linda McCurdy said that she and her colleagues are delighted with the new deal. “We are pleased to announce our new upsized syndicated credit facility with TD and the other syndicate lenders, which will provide us with further financial flexibility to pursue our organic growth and potential M&A opportunities,” she said. “Strategic acquisitions of high-quality operators continue to be an important contributor to K-Bro’s overall growth profile. We have an active M&A pipeline and remain well positioned from a balance-sheet and liquidity perspective and will continue to be disciplined as we evaluate acquisitions.”
K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. It’s also a leading provider of laundry and textile rental services in Scotland and northern England, the release said. K‑Bro and its subsidiaries operate across Canada and a large portion of the UK. The company provides a range of linen services to healthcare institutions, hotels and other commercial accounts that include the processing, management and distribution of general linen and operating room (OR) linen.
The company’s Canadian operations include 10 plants and two distribution centers under two brands: K-Bro Linen Systems and Buanderie HMR. K-Bro operates in 10 cities, including Québec City, Montréal, Toronto, Regina, Saskatoon, Prince Albert, Edmonton, Calgary, Vancouver and Victoria.
In the UK, K-Bro has operated Fishers since it was acquired in November 2017. Founded in 1900, Fishers is a leading laundry in Scotland and northern England. The company provides customers with linen workwear rentals, plus cleanroom garment services to the hospitality, healthcare, manufacturing and pharmaceutical sectors in the UK. Fishers operates five UK sites located in Cupar, Perth, Newcastle, Livingston and Coatbridge. Click here for details.