Ms. Linda McCurdy reports

K-BRO COMPLETES TRANSFORMATIVE ACQUISITION OF U.K.-BASED STAR MAYAN

K-Bro Linen Inc. has completed its previously announced acquisition of United Kingdom-based Star Mayan Ltd. for a cash purchase price of 107.2 million pounds sterling. The acquisition is highly complementary to K-Bro's existing U.K. businesses, Fishers and Shortridge, and creates a national footprint in the U.K.'s 1.6-billion-pound-sterling commercial laundry and textile rental sector.

"We are excited to close the acquisition of Star Mayan. Today's milestone represents the start of an exciting new chapter for K-Bro as we build upon the vision we had set out in 2017 when we first entered the U.K. market. Our focus now shifts towards execution of our integration plan with the goal of creating the leading national U.K. platform along with Fishers and Shortridge. We look forward to the multitude of opportunities ahead to continue growing the overall K-Bro business," said Linda McCurdy, director, president and chief executive officer of K-Bro.

Acquisition financing

The acquisition was partially funded by the previously closed bought deal financing whereby K-Bro issued 2,334,500 subscription receipts at a price of $34.55 per subscription receipt, which included the full exercise of the overallotment option. The remainder of the acquisition was financed by the corporation's new $134.3-million, four-year amortizing term loan.

With the closing of the acquisition now complete, each subscription receipt will be exchanged today for one common share of K-Bro, without additional consideration and without further action by the holders of subscription receipts. Holders of subscription receipts of record on June 6, 2025, are also entitled to receive a cash amount for each subscription receipt equivalent to the dividend per share payable by the corporation to holders of common shares of record on May 30, 2025, with such payment occurring on June 13, 2025.

As per established TSX guidelines, trading in the subscription receipts on the Toronto Stock Exchange will be halted effective prior to the opening of trading on the TSX today and the subscription receipts will be delisted as at the close of business today. The transfer register maintained by the subscription receipt agent for the subscription receipts will be closed as at the close of business today. The underlying common shares to be issued pursuant to the terms of the subscription receipts are expected to commence trading on the TSX today.

Description of 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 eleven processing facilities in eight Canadian cities: Quebec City, Montreal, Toronto, Regina, Edmonton, Calgary, Vancouver and Victoria.

Fishers was established in 1900 and is an operator of laundry and linen processing facilities in Scotland, providing linen rental, workwear hire and clean room 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 in Scotland and the northeast of England with facilities in Cupar, Perth, Newcastle, Livingston and Coatbridge.

Shortridge has operated as a family run business since the 1990s and is based in Cumbria, with plants in Workington, Dumfries and a distribution depot in Darlington. It specializes in providing high quality laundry services to local independent hospitality businesses, including hotels, B&Bs (bed and breakfasts), self-catering units and restaurants.

Additional information regarding the corporation including required securities filings are available on the company's website and through SEDAR+.

Description of Star Mayan

Star Mayan is a holding company that owns 100-per-cent interests in three operating businesses: Synergy, Grosvenor and AeroServe. Star Mayan is a leading commercial laundry business in England, serving the health care and hospitality markets. Typical services offered include processing, management and distribution of health care and hospitality linens, including sheets, blankets, towels, surgical gowns and other linen. Star Mayan has seven operating facilities strategically located across England: Bermondsey, Derby, Dunstable, Sheffield, Slough and St. Helens, in addition to a distribution depot in Manchester.

We seek Safe Harbor.