The acquisition strengthens the Johnson Group's position, but Alex Reid continues to operate as a stand-alone business unit, retaining both its name and its team.
Johnson ceo Stuart Graham noted Alex Reid's reputation for proactive product development, highlighting: "The technology transfer synergies that the deal creates." He added: "For example, GreenEarth can only be good news for us and Alex Reid, and the drycleaning and laundry sector as a whole."
Mike Sutton, cfo, told LCN that providing a route to market for GreenEarth had been one of the reasons for the acquisition.
Tom Elliott, managing director Alex Reid, also stressed to LCN the company's continued independence and reassured that little would change within his company. "We are part of Johnson Service Group, not of Johnson Cleaners."
Mr Elliot confirmed the strategic importance of the deal in giving Alex Reid the chance to market the GreenEarth solvent. Plans had not been finalised but probably will have effect during the second half of 2004.
The company would make GreenEarth solvent available to independent drycleaners in UK and Eire and in time in mainland Europe. How the last will be achieved is yet to be discussed.
He found it encouraging that Johnson is investing in drycleaning and was hopeful that GreenEarth might help to reverse the gentle decline in the UK drycleaning market of the past few years.
However, he reassured customers that this was not an attack on perc and Alex Reid would supply perc and, indeed, all the other chemicals as before.
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