K-Bro Linen Inc. has definitively agreed to acquire one hundred percent of the share capital of Fishers Topco Ltd., a transaction that establishes the inaugural international footprint for the acquirer outside of Canada. Structured on a cash-free, debt-free basis, the deal involves a base purchase consideration with an additional earn-out mechanism tied to incremental operational performance, entirely funded via an expanded senior secured revolving credit facility. This strategic acquisition represents a pivotal platform investment, providing immediate critical mass within the highly fragmented and mature United Kingdom linen hospitality market. The strategic rationale is highly compelling, driven by geographical expansion and the acquisition of an iconic, century-old brand with a dominant regional market position. By integrating this robust operational infrastructure and entrenched customer relationships, the acquirer aims to leverage this beachhead to execute further sector consolidation across the territory. Post-transaction, the strategy entails implementing cross-border operational efficiencies and sharing best practices, particularly leveraging the experienced local management team to capitalize on substantial organic growth opportunities.

FISHERS, which reported an EBITDA margin of LOGIN in 2017, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN discount to the average currently observed in the Business Services sector (11.3x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.