Shoe repair and key cutting retailer Timpson‘s has acquired dry cleaning arm of Johnson Services Group for £8.25 million.
While dry cleaning – along with mobile phone repairs – has for a while been one of Timpson‘s fastest-growing services, the acquisition means the retailer can focus on diversifying due to the ongoing decline of shoe repairs.
Johnson Services – owns Johnson Cleaners, Jeeves of Belgravia, and Jeeves International – was forced to close around 300 unprofitable stores in 2012 after posting a £200,000 loss.
Now with 200 branches around the UK, its last recorded total revenue in 2015 stood at £46.2 million, with profits of £2 million.
Johnson Services said it would use the cash from the sale of the business to pay a £1.5 million deficit contribution to its pension scheme, with the balance used to reduce net debt.