Ms. Linda McCurdy reports

K-BRO ANNOUNCES CLOSING OF VILLERAY ACQUISITION

K-Bro Linen Inc. has successfully completed its acquisition of Buanderie Villeray and its affiliate Buanderie La Relance for an enterprise value of $11.5-million and a potential earnout of $1-million. Villeray is a private laundry and linen operator centrally located in Montreal and serving the health care and hospitality markets with annual revenues of approximately $10-million. K-Bro will invest a further $5-million in capital expenditures to expand capacity and enhance operational efficiencies, enabling its Montreal business to significantly and profitably grow. As part of the transaction, K-Bro will close its Granby facility and consolidate its volumes into Villeray. K-Bro anticipates that the integration of its existing Granby operations into Villeray will be completed by the end of Q2 2024. The purchase price and capital expenditures will be satisfied by drawing down on K-Bro's revolving credit facility.

"Our acquisition of Villeray enhances K-Bro's position within the attractive Montreal market. Villeray's modern plant is strategically located in close proximity to customers, and we are investing to expand capacity, consolidate volumes, enhance operating efficiency, reduce fixed costs and support significant growth opportunities," said Linda McCurdy, president and chief executive officer at K-Bro.

"The Villeray acquisition is another example of our strategy of acquiring high-quality operators with leading market positions enabling K-Bro to grow market share in key regions. As we emerge from the pandemic, we are excited about our outlook. We continue to have an active M&A [mergers and acquisitions] pipeline and remain well positioned from a balance sheet and liquidity perspective to fund acquisitions, organic growth and our normal course issuer bid."

About K-Bro Linen Inc.

K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to health care institutions, hotels and other commercial accounts. K-Bro currently operates nine processing facilities and two distribution centres under three distinctive brands, including K-Bro Linen Systems Inc., Buanderie HMR and Les Buanderies Dextraze, in 10 Canadian cities: Quebec, Montreal, Toronto, Regina, Saskatoon, Prince Albert, Edmonton, Calgary, Vancouver and Victoria.

Fishers, acquired by K-Bro in 2017, was established in 1900 and is an operator of laundry and linen processing facilities in Scotland. Fishers provides linen rental, workwear hire and cleanroom garment services to the hospitality, health care, manufacturing and pharmaceutical sectors. Fishers' client base includes major hotel chains and prestigious venues across Scotland and the northeast of England. The company operates five sites with facilities in Cupar, Perth, Newcastle, Livingston, Inverness and Coatbridge.

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