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FRP Corporate Finance has successfully advised a North West based laundry business Shortridge on its sale to a Canadian listed firm, K-Bro Linen, in a deal worth up to £26.1m.
Originally founded in 1845, Shortridge provides high quality linen hire and laundry services from its sites in Dumfries, Workington and Darlington, to over 1,200 independent hospitality customers.
Shortridge’s shareholders appointed FRP Corporate Finance as lead advisor on the sale of the business, which has an annual turnover of over £12m. FRP’s Corporate Finance team was led by partner Matthew Flower, director Joel Coulson and assistant manager Liam Merritt and designed a bespoke process to select a strategic buyer for the business.
The business was acquired by K-Bro Linen, Inc, the largest laundry and linen processor in Canada, in a deal that achieved a cash exit for the shareholders, while Shortridge’s management and employees continue with the business. Toronto Stock Exchange listed K-Bro plans to retain the Shortridge branding as it looks to extend K-Bro’s geographic reach further south into the UK.
Regarding the sale, Flower said: “This deal represents a perfect fit for both parties. Not only does it allow the well-established and respected Shortridge name to live on and secure the future of its employees, but it also means that K-Bro can diversify its customer base, providing a platform for expansion further south into the UK.
“It proves that there is sustained interest in high quality UK companies from international buyers as greater economic stability encourages more businesses to target growth opportunities.”
Io Strong, finance director and shareholder of Shortridge, added: “The team at FRP Corporate Finance provided us with invaluable advice throughout the entire process and their expertise helped us through our complex deal dynamics and achieved a great outcome for all shareholders and the business going forward.”
