EDMONTON, AB, — K-Bro Linen Inc. announced that it has successfully completed its acquisition of Buanderie C.M. Inc. (“C.M.”) for an enterprise value of $12 million, on a cash-free, debt-free basis, according to a news release.
The transaction includes the real estate for C.M.’s processing and storage facilities located in North Montréal. The acquisition is being funded entirely from K-Bro’s syndicated revolving credit facility and, after synergies, is expected to be accretive to the Corporation.
C.M. is a private laundry and linen operator located in Montréal and serving the healthcare market with annual revenues of approximately $7.3 million. The acquisition will enable K-Bro to operate with two facilities in Montreal to service its growing healthcare and hospitality business.
“K-Bro is proud to serve Quebec and we are excited to further diversify our customer base in the province. C.M. has been serving top-tier healthcare customers in the attractive Montréal market for decades. Our acquisition of C.M. expands K-Bro’s healthcare customer base, increases healthcare volumes, adds additional healthcare capacity, and supports significant future growth opportunities,” said Linda McCurdy, president and chief executive officer at K-Bro.
“The C.M. acquisition aligns with our strategy of acquiring high-quality operators. We’re excited about our outlook and have an active M&A pipeline. K-Bro remains well positioned from a balance sheet and liquidity perspective and will continue to be disciplined as we evaluate acquisitions.”
