EDMONTON, AB, March 2,
2023 /CNW/ - K-Bro Linen Inc. ("K-Bro" or the
"Corporation") (TSX: KBL) today announced that it has
successfully completed its acquisition of Buanderie Para-Net
("Paranet") for an enterprise value of $11.5
million and a potential earnout of $1.9 million. Paranet is a private laundry and
linen services company for the Quebec
City healthcare and hospitality markets. The purchase price
will be satisfied by drawing down on K-Bro's revolving credit
facility.
"With continued momentum in our business, we have been
refocusing on strategic acquisitions and have an active M&A
pipeline. The Paranet acquisition is another example of our
strategy of acquiring high-quality operators with leading market
positions enabling K-Bro to grow market share in key regions," said
Linda McCurdy, President and Chief
Executive Officer at K-Bro. "The acquisition also provides us with
additional operating efficiencies, capital expenditure synergies,
and significant growth capabilities. We remain well positioned from
a balance sheet and liquidity perspective and will continue to be
disciplined as we evaluate acquisitions."
CORPORATE PROFILE
K-Bro is the largest owner and operator of laundry and linen
processing facilities in Canada.
K-Bro provides a comprehensive range of general linen and operating
room linen processing, management and distribution services to
healthcare institutions, hotels and other commercial accounts.
K-Bro currently operates nine processing facilities and two
distribution centres under three distinctive brands, including
K-Bro Linen Systems Inc., Buanderie HMR and Les Buanderies
Dextraze, in ten Canadian cities: Québec City, Montréal,
Toronto, Regina, Saskatoon, Prince
Albert, Edmonton,
Calgary, Vancouver and Victoria.
Fishers, acquired by K-Bro in 2017, was established in 1900 and
is an operator of laundry and linen processing facilities in
Scotland. Fishers provides linen
rental, workwear hire and cleanroom garment services to the
hospitality, healthcare, manufacturing and pharmaceutical sectors.
Fishers' client base includes major hotel chains and prestigious
venues across Scotland and the
North East of England. The company
operates five sites with facilities in Cupar, Perth,
Newcastle, Livingston,
Inverness and Coatbridge.
Additional information regarding the Corporation including
required securities filings are available on our website at
www.k-brolinen.com and on the Canadian Securities Administrators'
website at www.sedar.com; the System for Electronic Document
Analysis and Retrieval ("SEDAR").
K-Bro est le plus important propriétaire et exploitant de
buanderies au Canada. K-Bro
fournit une gamme étendue de services de buanderie aux
établissements de soins de santé, hôtels et autres clients
commerciaux. K-Bro exploite actuellement neuf usines et deux
centres de distribution sous trois entités distinctes, incluant
K-Bro Linen Systems Inc., Buanderie HMR et Les Buanderies Dextraze,
dans dix villes canadiennes: Québec, Montréal, Toronto, Regina, Saskatoon, Prince
Albert, Edmonton,
Calgary, Vancouver et Victoria.
Vous pouvez obtenir des renseignements supplémentaires sur la
Société, y compris les documents déposés auprès des autorités de
réglementation, sur notre site Web, au www.k-brolinen.com et sur le
site Web des autorités canadiennes en valeurs mobilières au
www.sedar.com, via le Système électronique de données, d'analyse et
de recherche (« SEDAR »).
FORWARD LOOKING STATEMENTS
This news release contains forward-looking information that
represents internal expectations, estimates or beliefs concerning,
among other things, future activities or future operating results
and various components thereof. The use of any of the words
"anticipate", "continue", "expect", "may", "will", "project",
"should", "believe", and similar expressions suggesting future
outcomes or events are intended to identify forward-looking
information. Statements regarding such forward-looking information
reflect management's current beliefs and are based on information
currently available to management.
These statements are not guarantees of future performance and
are based on management's estimates and assumptions that are
subject to risks and uncertainties, which could cause K-Bro's
actual performance and financial results in future periods to
differ materially from the forward-looking information contained in
this news release. These risks and uncertainties include, among
other things: (i) risks associated with acquisitions, including the
possibility of undisclosed material liabilities; (ii) K-Bro's
competitive environment; (iii) utility costs, minimum wage
legislation and labour costs; (iv) K-Bro's dependence on long-term
contracts with the associated renewal risk; (v) increased capital
expenditure requirements; (vi) reliance on key personnel; (vii)
changing trends in government outsourcing; (viii) changes or
proposed changes to minimum wage laws in Ontario, British
Columbia, Alberta, and the
United Kingdom, which could have
an adverse effect on expenses in respect of employees situated in
those jurisdictions. While a portion of such expenses may be passed
on to or be recoverable from customers, there can be no assurances
that that will occur and (viii) the availability of future
financing. Material factors or assumptions that were applied in
drawing a conclusion or making an estimate set out in the
forward-looking information include: (i) volumes and pricing
assumptions; (ii) expected impact of labour cost initiatives; and
(iii) frequency of one-time costs impacting quarterly and annual
financial results; and (iv) the level of capital expenditures.
Although the forward-looking information contained in this news
release is based upon what management believes are reasonable
assumptions, there can be no assurance that actual results will be
consistent with these forward-looking statements. Certain
statements regarding forward-looking information included in this
news release may be considered "financial outlook" for purposes of
applicable securities laws, and such financial outlook may not be
appropriate for purposes other than this news release. Forward
looking information included in this news release includes, without
limitation, the terms and conditions of the Acquisition and the
Amended Credit Facility and the expected revenues, earnings, growth
opportunities following the closing of the Acquisition and
statements with respect to future expectations on margins and
volume growth.
All forward-looking information in this news release is
qualified by these cautionary statements. Forward-looking
information in this news release is presented only as of the date
made. Except as required by law, the Corporation disclaims any
intention or obligation to update or revise any forward-looking
statements to reflect subsequent events or circumstances.
SOURCE K-Bro Linen Inc.