K-Bro Linen closes £35 million acquisition of Fishers Topco

K-Bro Linen Inc.

News Release


Edmonton, Canada (November 27, 2017) – K-Bro Linen Inc. (“K-Bro” or the “Corporation”) today announced that it has successfully completed the previously announced £35 million (prior to any earn-out consideration that may become payable on incremental EBITDA (subject to certain adjustments and a fixed linen expense of 11.4% of revenue) in excess of £5.0 million for the fiscal year ending December 31, 2017) acquisition (the “Acquisition”) of Fishers Topco Ltd. (“Fishers”), a leading commercial laundry business in Scotland and the North East of England providing linen and garments primarily to the hospitality sector.

The Acquisition was funded through K-Bro’s amended senior secured revolving credit facility of C$100 million (the “Amended Credit Facility”). K-Bro expects to close its previously announced offering of 804,000 common shares (“Shares”) at a price of $37.35 per Share for gross proceeds of $30,029,400 (the “Offering”) on or about December 12, 2017. The offering was conducted on a bought deal basis by a syndicate of underwriters led by TD Securities Inc.

The net proceeds from the Offering will be used to partially pay down indebtedness that was incurred under K-Bro’s Amended Credit Facility to fund the Acquisition and to pay certain fees and expenses related to the Acquisition. KBro has granted the syndicate an over-allotment option, exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 120,600 Shares which, if exercised, would increase the gross Offering size to $34,533,810, to cover over-allotments, if any, and for market stabilization purposes.

“We very much appreciate the enthusiastic support and interest that we have received from the capital markets and our customers since we announced the Acquisition. We believe the reaction reflects the transaction terms and Fishers growth opportunity,” said Linda McCurdy, President & Chief Executive Officer of K-Bro. “We look forward to leveraging Fishers’ market leading position, experienced local management team, entrenched customer relationships and proven track record of stable and profitable operations.”


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 was established in 1900 and is an operator of laundry and linen processing facilities in Scotland, providing 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 seven sites, including one depot, in Scotland and the North East of England 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”).

For more information, please contact:

Linda McCurdy
President & Chief Executive Officer

Kristie Plaquin
Chief Financial Officer

K-Bro Linen Inc. (TSX: KBL)
Phone: 780.453.5218
Email: inquiries@k-brolinen.com
Web: www.k-brolinen.com