- Johnson Service Group ("JSG") is pleased has announced the sale of its facilities management ("FM") activities to Bell Rock Bidco, a new company formed to effect the acquisition, with financing provided from funds managed by Lyceum Capital Partners.

The consideration is £32.2 million on a debt free, cash free basis and subject to adjustments for normalised working capital.

After the adjustments and transaction costs, the initial net proceeds will be approximately £28m with up to a further £2.2m of deferred consideration potentially receivable.

Of this deferred consideration £0.3m is expected to be received within 12 months of completion and a further £0.8m in August 2015. The receipt of the balance of £1.1 million is dependent on the future utilisation of deferred tax balances by the purchaser.

Over the last 18 months the JSG has refocused the business on textile services, having acquired Cannon Textile Care in March 2012, rationalised the drycleaning business closing over 100 under-performing branches and disposed of its non-core Alex Reid business.

The disposal of FM represents a further step in the Board's strategy to create a single, focused textile services business.

Kevin Elliott, the managing director of the FM activities, has resigned from the Board of JSG with effect from completion of the disposal.

John Talbot, executive chairman, commented: "I am very pleased with this Disposal which effectively completes the long term plan of reorganising the Group, refocusing the business on its original core market in textile services and achieving normalised borrowing levels.

There is a major opportunity for continued expansion within textile services based on a strong financial and operational platform."

At 9:35am: [LON:JSG] Johnson Service Group share price was +0.25p at 49p

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