K-Bro Linen (KBL) M&A presentation summary

Strategic rationale and acquisition overview

• Acquisition of Star Mayan for £107 million ($199 million) creates a top 3 national U.K. commercial laundry business with coast-to-coast presence in both Canada and the U.K.

• Enhances revenue diversification by adding a leading U.K. healthcare-focused platform, shifting pro forma revenue mix to 43% healthcare and 57% hospitality in the U.K.

• Highly complementary to existing U.K. businesses, enabling significant anticipated synergies of over £2.0M annually through cost, operational, and platform optimizations.

• Star Mayan brings a stable, recurring revenue base, diversified customer portfolio, and experienced management team.

• Acquisition aligns with stated criteria: customer-centric values, margin sustainability, economies of scale, and management continuity.

Financial profile and transaction details

• Star Mayan generated £94M ($166M) in TTM revenue and £14.2M ($25.2M) in TTM adjusted EBITDA as of March 2025.

• Purchase price represents 7.6x TTM adjusted EBITDA, including anticipated synergies.

• Pro forma K-Bro revenue is $551M and adjusted EBITDA is $99M for the TTM ended March 2025.

• Transaction financed by a $70M subscription receipt offering and a $140M amortizing term loan, with a $175M revolving credit facility and additional accordion availability.

• Pro forma net debt/TTM adjusted EBITDA at closing is ~3.3x, with a target to delever below 3x within 12 months.

Integration strategy and growth outlook

• Integration plan includes a newly created U.K. Managing Director, regional leads, and a 100-day transition plan.

• Four-phase integration approach: initial integration (12–18 months), local optimization (1–2 years), national optimization (2–3 years), and long-term growth (3+ years).

• Planned £5M capex investment to expand capacity and enhance operational efficiencies.

• Continued commitment to monthly dividend; normal course issuer bid temporarily paused.

• Proven track record of successful acquisitions and integration, with over 10 acquisitions since IPO and a 13% revenue CAGR.