The Davis Service Group Plc, through its wholly owned subsidiary, The Sunlight Service Group Limited, has conditionally agreed to acquire the entire issued share capital of Laundrycraft Limited for a consideration of £7.25 million in cash.
The acquisition is conditional upon confirmation from the relevant authority that the purchase will not be referred to the Monopolies and Mergers Commission.
Laundrycraft, which is principally engaged in the provision of linen rental services to hotels and restaurants, operates from six processing facilities: Wellingborough, Whitchurch (two), Andover, Kidderminster and Palmers Green.
In the year ended 30 June 1997 Laundrycraft achieved a profit before tax of £0.8 million on a turnover of £12.0 million. Net assets at that date were £2.9 million.
In addition to extending Sunlight’s geographical coverage Laundrycraft will provide additional facilities which will assist in the development of Sunlight’s healthcare business.
