Johnson buys Jarvis contracts

DRY cleaning firm Johnson Service Group is buying a clutch of contracts from rail firm Jarvis, which went into administration earlier this year.

By The Newsroom

Published 1st Jul 2010, 12:52 BST

Updated 1st Jul 2010, 12:52 BST

The group, which specialises in textile rental and dry cleaning, bought three private finance contracts together with two related special purpose companies (SPCs) from the York-based firm.

Under Jarvis, the contracts generated revenue of 4m in the year to March. They employ around 86 staff and each have more than 15 years on the contract remaining.

Johnson has also reached an agreement with Jarvis to manage, under licence, a further five facilities management contracts, together with the related SPCs, pending acquisition.

The five contracts generated revenue of 6.5m in the year to March and employ another 160 staff.

The eight contracts and seven related SPCs are expected to cost 3m in cash.

Deloitte was appointed administrator for Jarvis and its subsidiary Jarvis Accommodation Services in March after its lenders refused to prop it up.

Deloitte York