Timpson cleans up in swoop for Johnson Service Group
Timpson has snapped up the drycleaning business of Johnson Service Group for £8.25 million as it looks to cash in on the British public's dirty laundry.
Best known for shoe repairs and key-cutting, Timpson also offers drycleaning, which is one of its fastest growing services.
Johnson said that the deal will enable it to focus on its higher margin workwear and linen rental business, adding that it will use the proceeds to reduce debt and pay towards its defined benefit pension scheme.
Boss Chris Sander said: "We continue to successfully implement our strategic growth plan, with the disposal of the drycleaning business enabling us to focus our efforts on the ongoing expansion of our textile rental activities."
Total revenue of Johnson's drycleaning activities in 2015 was £46.2 million and adjusted operating profit came in at £2 million.
However, over the last four years the group's drycleaning store estate has shrunk from around 500 stores down to 200.
Johnson also took the opportunity to update the market on its full year trading, which it said is expected to come in "slightly ahead of current market expectations".