JSG Johnson Service Group Plc

RNS Number:4824S
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
END

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