Johnson Group Cleaners Plc has announced the acquisition of the whole of the issued shared capital of Connacht Court Group Ltd, Ireland’s largest textile rental company, for IR£28.25m (£24.22m sterling). In addition CCG’s debt of approximately IR£5.6m will be assumed.
CCG provides a range of textile based services to the hospitality, catering, industrial and healthcare markets, all of which will supplement the group’s existing British textile rental business.
CCG has textile rental plants in Galway, Dublin and Belfast, and specialist “cleanroom facilities” in Galway, Spiddal and Dublin.
CCG’s audited accounts for the year ended 31 October 1997 reported turnover and profit before tax of IR£25.2m and IR£107 000 respectively. Operating profit for the same period was IR£524 000.
Mr. T. Joyce, CCG’s managing director, who has a wealth of experience and knowledge of the industry, will be staying with the company and will be supported by his existing management team.
Commenting on the acquistion, Richard Zerny, chief executive of Johnson Group Cleaners Plc, said: “This acquisition gives us a strong presence in the textile rental market in both the Republic of Ireland and Northern Ireland.
“We believe that our experience and operating techniques will bring significant benefits to CCG’s business, especially in the workwear sector. All of CCG’s plants have considerable scope for expansion, although some re-organisation cost is likely to be incurred mainly during 1999.” Contact is reported to have initially been made in early April, with the Connacht Group granting Johnson a period of exclusivity. Talks then began in earnest at the beginning of June and came to fruition with the completion of the acquisition on 20 July.
Mr Zerny told LCN: “We have admired the Connacht Group for many years. Despite its low profits recently, it has a good management team and is a brand leader. “Our relationship will be a two-way affair. We will of course bring our own ideas, skills and experience to bear in Ireland as well as bringing back ideas from the Connacht Group to our own operation.”
