Johnson Service Group acquires Jarvis contracts

JOHNSON Service Group has acquired three PFI contracts from rail firm Jarvis, which went into administration earlier this year.
By The Newsroom
Published 30th Jun 2010, 10:56 BST

The group, which specialises in textile rental and dry cleaning, bought the 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 2010. They employ around 86 staff and each have more than 15 years on the contract term remaining.

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Johnson Service Group 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 2010.

The aggregate consideration for the eight contracts and seven related SPCs is expected to be 3m in cash on completion and will be financed from existing bank facilities, of which 1.2m plus costs has been incurred to date.

Deloitte was appointed administrator for Jarvis and its subsidiary Jarvis Accommodation Services in March.

Related topics:DeloitteYork