Acquisition

Johnson Service Group PLC 11 October 2005 11 October 2005 Johnson Service Group PLC Acquisition of SGP Property Services Limited Johnson Service Group PLC ('Johnson') announces the acquisition of the white collar facilities management business SGP Property Services Limited ('SGP') through the acquisition of its holding company Macrocom (840) Limited ('Macrocom') on a debt and cash free basis for a total consideration of up to £28.7 million. The consideration payable is £23.2 million in cash on completion, plus up to £4.0 million of deferred cash consideration dependent on achieving sales targets during the next 21 months and up to £1.5 million in additional cash consideration payable to the management team dependent upon attaining gross profit targets of the business in each of the three years to 31 December 2008. The acquisition will be funded from existing debt facilities. The Vendors* are two individuals and the management team. The senior management team, including the managing director, Kevin Elliott, will remain with the business. SGP, based in Leicester but operating nationally, provides a range of property management services ranging from retail store and office acquisition, maintenance helpdesk, procurement, lease and rates services through to dilapidations and disposals. The company has over 220 employees and manages approximately 25,000 sites across the UK for 40 clients including a number of the UK's leading retailers, operators of licenced premises and financial services businesses. SGP manages, as agent on behalf of its clients, in excess of £120 million expenditure per year on building repairs, maintenance and projects within its clients' property portfolios. The Company has grown solidly since its creation in 1999 following its management buyout from Sears. With a significant future sales pipeline developed we are confident of continuing to build on its strong performance from the combined platform. SGP had turnover and EBIT for the year ended January 2005 of £8.6 million and £2.0 million respectively with net assets at that date of £2.8 million. Gross assets of the business are £4.6 million. The acquisition is expected to be earnings enhancing in the first full financial year of ownership. Johnson Group CEO Stuart Graham said: 'The acquisition of SGP, which predominantly serves the financial services and retail sectors, perfectly complements our existing facilities management business of Johnson Workplace Management ('JWM') which services primarily the commercial office market. Together they form a significant facilities and property management operation with a quality and developing client base which now has the critical mass necessary to expand within existing markets and to drive further organic growth by launching into new property sectors with an increased range of services.' *The Vendors are Mr Leonard O'Brien, Mr John Readman, Mr Kevin Elliot, Ms Jennifer Allton, Mr James Hetherington and Mr Paul Smith. www.johnsonplc.com For further information, please contact: Hudson Sandler Johnson Service Group PLC Michael Sandler Stuart Graham, CEO James Benjamin Jim Wilkinson, CFO Telephone: 020 7796 4133 Telephone: 020 7290 0390 Notes to editors - The Johnson Service Group The Johnson Service Group is a support services business with two principal activities: Textile Related Services and Facilities Management. The Group's core activities have been developed and strengthened through a combination of strategic acquisitions and organic growth. Textile Related Services includes some of the industry's leading names. Johnsons Apparelmaster is Britain's leading workwear rental business; CCM specialises in the manufacture and sourcing of workplace garments; Dimensions is the country's leading supplier of retail corporatewear; DCC is the leading supplier of corporatewear to the finance industry; Johnsons Cleaners, Britain's No. 1 drycleaning brand, and Sketchley, provide a nationwide network of circa 600 retail drycleaning shops. Jeeves of Belgravia provides an exclusive and bespoke drycleaning service within the London area. The linen and hospitality business comprises Stalbridge Linen, which is Britain's leading supplier of linen and chefs' wear to the leisure, professional catering and corporate hospitality sectors and Johnson Hospitality Services, which is the British market leader in the hire of catering equipment, hospitality furniture and related items to sporting, entertainment and similar events. Johnson Workplace Management, provides a comprehensive range of services based on a unique business model. This focuses on management, property expertise and the provision of a wide range of support services to FTSE businesses, national companies and institutions. This information is provided by RNS The company news service from the London Stock Exchange
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