FISHERS, the Fife-based commercial laundry specialist, has been acquired by Canada’s biggest provider of linen services for £35 million.
Healthcare-focused K-Bro has agreed to acquire 100 per cent of Fishers’ parent company, Fishers Topco Limited, from major shareholder Caird Capital and a host of individual shareholders. The acquisition marks K-Bro’s first foray outside its native Canada, with the deal safeguarding Fishers’ 800-strong team and headquarters in Cupar. And K-Bro signalled that other deals could follow, highlighting the opportunity to expand in the UK through consolidation.
Fishers’ senior management team, led by managing director Michael Jones, who has been in post since 2014, will continue to head the business. Caird had taken control of the company, which was established in Aberfeldy in 1900, the year before from former boss and majority shareholder Bruce McHardy.
K-Bro declared it will use Fishers, whose clients include the Caledonian Waldorf Astoria in Edinburgh and boutique hotel chains Malmaison and Hotel Du Vin, as a platform to build its presence in the UK commercial laundry market. It flagged the opportunity to expand both organically and through consolidation.
As well as the hospitality sector Fishers, which will retain its trading name further to the deal, provides services to the healthcare, manufacturing and pharmaceutical sectors. The most recent accounts for Fishers Topco show that losses widened to £1.73 million in 2016 from £660,427 the year before, with turnover climbing to £36.1m from £34.9m.
It is understood that the K-bro deal, which includes an earn-out consideration based on full-year EBITDA (earnings before interest, tax, depreciation and amortisation), was not directly influenced by the weakness of sterling since the Brexit vote. Talks over the acquisition had been going on for some time as K-Bro mulled its options to expand internationally.
Mr Jones said: “This is great news for Fishers as it brings a new owner for the business with the resources, experience and ambition to take Fishers to the next level. I am confident that, as part of K-Bro, Fishers will thrive and I look forward to drawing on K-Bro’s experience, particularly in the Canadian healthcare sector, to help us grow the Fishers business further here in the UK.”
K-Bro, which is listed on the Toronto Stock Exchange, is based in Edmonton, Alberta. It employs more than 1,900 staff over nine processing facilities and two distribution centres in 10 cities across Canada. Some 75 per cent of its business comes from long-term healthcare contracts, with the balance of its revenue generated in the hotel market and other commercial sectors.
Linda McCurdy, president and
chief executive of K-Bro, said: “We are
very excited to add the Fishers platform
as K-Bro’s first acquisition outside of
Canada.
“The UK linen hospitality market is mature, but still highly fragmented, and we expect to leverage Fishers’ leading market position, experienced local management team, entrenched customer relationships and proven track record of stable and profitable operations to take advantage of the significant organic growth and consolidation opportunities available to us, similar to what we have achieved in Canada.”
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