Acquisition

Brooks Service Group PLC 10 October 2000 Brooks Service Group Plc announces that on 9 October 2000 it exchanged contracts to acquire 99.48 per cent. of the entire issued share capital of County Luxdon Laundry Limited. The business, which is based in Sunderland, County Durham, was established in 1938 and provides textile rental services to hotels and restaurants in the North East of England. The consideration payable in cash on Completion is £200,000, which will be held in escrow until 15 November pending the agreement of Completion Accounts made up to 6 October 2000. In addition, Brooks is assuming debt in the business of approximately £1.1 million. The net assets of County Luxdon at 31 July 2000 were £203,071. The business, which last year turned over £1.4 million, is currently not profitable but is expected to break even in 2001. The acquisition provides Brooks with capacity in the North East of England and further strengthens the Company's core business of supply of linen rental.
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