Canadian firm buys Fife laundry firm Fishers
Fife laundry business Fishers has been sold to the largest provider of laundry and linen services in Canada in an eight-figure deal.
K-Bro Linen has struck an agreement to acquire 100 per cent of Fishers’ parent company, Fishers Topco, from its major shareholder – private equity firm Caird Capital – as well as a number of individual minority shareholders for £35 million, in addition to an earn-out consideration based on full-year underlying earnings.
The Canadian firm plans to use the acquisition as a platform from which to build its presence in the UK commercial laundry and textile rental market by targeting organic growth and “consolidation opportunities”.
Fishers will operate as a standalone subsidiary of K-Bro and will retain its headquarters in Cupar. The management team will remain with the business and no headcount reductions are planned as part of the deal.
Fishers employs some 800 staff across seven sites in Scotland and the north-east of England and provides commercial laundry and textile rental services chiefly to the hospitality sector but also to a range of other industries including healthcare, manufacturing and pharmaceutical.
Michael Jones, managing director of Fishers, 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.”
Linda McCurdy, president and chief executive of K-Bro, said: “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.”
PwC’s corporate finance team based in Scotland provided lead advisory services to the shareholders of Fishers. PwC’s tax arm provided sell-side tax advice to the Scots firm.
Jon Shelley, head of corporate finance for PwC in Scotland, said: “K-Bro presents a great home for the business and its employees.”