Johnson Service Group has sold its facilities management division for up to £32.2million to Bell Rock Bidco, a company formed for the acquisition and financed from funds managed by Lyceum Capital Partners. The sale is on a debt-free, cash-free basis subject to adjustments for normalised working capital.
Johnson said it intends to use the proceeds to reduce group debt and after costs the initial sum will be about £28million, with further potential income of up to £2.2million. Of this £0.3 million is expected to be received within 12 months of completion, with a further £0.8 million in August 2015. The remaining £1.1 million is dependent on the future utilisation of deferred tax balances by the purchaser.
The deal completes Johnson Group’s restructuring and it will now focus on textile services and drycleaning. It believes there it potential to expand textile services in terms of both geography and the range of services.
Chairman John Talbot said: "I am very pleased with this disposal which effectively completes the long term plan of reorganising the group, refocussing the business on its original core market in textile services and achieving normalised borrowing levels."