JSG Johnson Service Group Plc

RNS Number:8705A
Johnson Service Group PLC
15 July 2004



                                                                   15 July 2004

                           Johnson Service Group PLC

               Acquisition of UK's leading Corporatewear Supplier



Johnson Service Group PLC ("Johnson") announces the acquisition, on a debt free
basis, of the entire issued share capital of Dimensions Holdings Limited and
subsidiary companies ("Dimensions"), the UK's leading corporatewear supplier.
The vendors are Gresham LLP, the private equity firm, and the Dimensions'
management team who will remain with the business.  The consideration is #21.7
million in cash and #2.3 million in loan notes on completion plus deferred
consideration of up to #3.4 million, payable in cash to the management team over
the next two years dependent on the achievement of certain profit targets.  It
is estimated that the actual payout will be circa #2.5 million.



Dimensions was originally acquired by Johnson as part of the Semara acquisition
in February 2000 and, in accordance with the strategy of the Group at that time,
subsequently sold to Gresham LLP, the private equity firm, and management in
December 2000.



Dimensions supplies corporatewear to a number of the UK's leading retail
businesses and has been expanding its offering into the travel, finance, hotels
and leisure sectors. It will continue to trade under the well known Dimensions
brand name and will operate within Johnson as a stand alone business. Dimensions
will develop ties with Johnson's existing clothing division and will pursue
opportunities and synergies where they exist.



Dimensions' turnover and profit before taxation for the year ended June 2003 was
#27.5 million and #1.4 million respectively with net assets at that date of #5.7
million.  Turnover and operating profit in the eleven months to May 2004, as
derived from the unaudited management accounts, were #25.4 million and #2.5
million respectively.



Johnson CEO Stuart Graham said: "Corporatewear  is an expanding area of the
textile services market and the acquisition of Dimensions represents a quality
opportunity to increase the range of services we offer to our customers.
Further, the Dimensions model is certainly transportable and I believe we can
over time move into the very large and, as yet equally unconsolidated, market in
Europe.  The acquisition is entirely in line with our strategy and with circa
10% of the market there is good room for growth".



David Toon, Managing Director of the Johnson Textile and Hospitality Services
Division, added: "This exciting acquisition provides Johnson with the clear
market leadership in the provision of both corporatewear and workwear in the UK
and further strengthens our capability and capacity".




Simon Hughes, architect of Dimensions' growth over the last decade, who will
continue to lead the business said: "I am pleased to be rejoining Johnson at
this time.  Dimensions has become the leading provider of designed clothing for
people at work in the last few years and it was vital to find an organisation
that shared our passion for customer service, ambition and vision for the
future.  Johnson has changed significantly since we left the Group in 2000.
Their clear focus and strategy has impressed me enormously and this was clearly
the best home for Dimensions; especially with an eye to the future".



On 7th July Johnson issued its pre-close trading statement commenting that all
businesses have performed to expectations in the first 6 months of the year.







For further information, please contact:


gcg hudson sandler                                     Johnson Service Group PLC
James Benjamin                                         Stuart Graham, CEO
Telephone: 020 7796 4133                               Mike Sutton, CFO
                                                       Telephone: 0151 933 6161
                                                       Website: johnsonplc.com





Notes to editors - The Johnson Service Group



The Johnson Service Group has two principle activities: the traditional
businesses focusing on textiles and the recently established facilities
management operation. Over the last 2 years these core activities have been
developed and grown through a series of strategic acquisitions. The Company has
been extensively overhauled under the new Chief Executive Stuart Graham.



Textile related support services include Johnsons Apparelmaster, Britain's
leading launderer and renter of workwear; CCM, a manufacturer and sourcer of
workplace garments; Dimensions, the leading supplier of corporatewear;
Stalbridge Linen, Britain's leading linen supplier to the leisure, professional
catering and corporate hospitality sector; Johnson Hospitality Services,
recently acquired and expanded, the British market leader in the hire of
catering equipment, hospitality furniture and related items to sporting,
entertainment and similar events. Johnsons Cleaners, Britain's No. 1 dry
cleaning brand, and the newly acquired Sketchley provide a nationwide network of
circa 620 retail dry cleaning shops. Jeeves of Belgravia provides an exclusive
and bespoke dry cleaning service within the London area.



The newly established facilities management division, through Johnson Workplace
Management, provides a fully comprehensive range of services, utilising a unique
business model focusing on management, property expertise and the provision of a
wide range of support services to FTSE and national companies and institutions.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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