EDMONTON, AB – K-Bro Linen Inc. announced the acquisition of Shortridge Ltd., a hospitality laundry provider based in the North West of England. This expands K-Bro’s geographic footprint in the £1.4 billion UK commercial laundry and textile rental market, according to a news release.
Shortridge is headquartered in North West England, with laundry processing sites in Lillyhall and Dumfries and a distribution center in Darlington. It is a long-established and respected laundry company and K-Bro plans to retain its branding. Its experienced management team will remain with the business and K-Bro intends to retain Shortridge’s employees across its three sites.
“While our original plans to grow our presence in the UK were interrupted by the Covid pandemic, we have stayed on the alert for further growth opportunities in the UK, and I am excited by the potential that this acquisition presents for us and for Shortridge’s customers,” said Linda McCurdy, K-Bro president and CEO. “We share the same values as Shortridge, so the cultural fit is strong and the business has found a good home as part of the K-Bro family. This is a great opportunity for us to diversify our customer base in the UK and to position our combined UK business for more growth as we look to extend K-Bro’s geographic reach further south into the UK.”
Shortridge is being acquired for consideration of £24.1 million, on a cash-free, debt free basis (subject to customary conditions, including certain escrows) and with a further potential earn-out of £2.0 million for achieving certain targets for the 12 months through September 2024. Shortridge’s last twelve months’ revenue for the period ended March 31, 2024 was approximately £12.5 million. The transaction includes the freehold and leasehold real estate for Shortridge’s laundry processing facilities. The acquisition is being funded entirely from K-Bro’s recently increased syndicated debt facility and is expected to be accretive to the Corporation.
“This is a good news story for Shortridge and our customers as we join the K-Bro family with the resources and the vision to help us grow the business further while continuing to look after the interests of our valued customer base. K-Bro’s experience, coupled with Fishers’ strong reputation and track record here in the UK, make for a formidable team and we can look forward to an exciting future together,” said Peter Semple, Shortridge business director.
K-Bro also owns Fishers Laundry Group, the commercial laundry and textile rental provider covering Scotland and the North East of England, which it acquired in 2017.
