Johnson Service Group completes acquisition of Bourne Services

3rd Mar 2014 11:08

Textile and drycleaning services company Johnson Service Group (JSG) has completed the acquisition of Bourne Services Group, a hotel linen provider, for 22m pounds.The consideration was paid in cash on a debt free, cash free basis.JSG plans to place more than 26m shares at 10p at a price of 51p, representing 10% of the company's issued share capital, to fund the acquisition. The placing will raise about £12.8m. "The directors also believe that the placing will maintain balance sheet strength and flexibility," the company said. Bourne's operations are focused on the hotel linen rental market and it currently supplies some 350 hotels servicing approximately 28,000 bedrooms. Shares rose 3.85% to 54p at 11:40.RD