The Globe and Mail reports in its Friday, June 13, edition that the global laundry and linen processing sector is becoming an attractive area for consolidators seeking to expand their global presence and improve efficiencies. The Globe's David Berman writes that K-Bro Linen is taking the lead in this movement. It has completed the acquisition of U.K.-based STAR Mayan for 107.2 million pounds. Following this deal, TD's Derek Lessard raised his share target by a loonie to $50 and maintained a "buy" rating. He says in a note: "We think this deal strongly enhances K-Bro's position in the U.K. ... Given potential upside from new bidding opportunities and more predictable earnings, we think the shares, trading well below historical average, present compelling value." The deal gives K-Bro a top-three position in the U.K. market, with the addition of seven facilities and one distribution depot, giving the company about a 10-per-cent market share. It also raises K-Bro's exposure to the U.K. health care sector to 57 per cent of revenue from 49 per cent previously. The company expects to find two million pounds in cost synergies from the deal. Mr. Lessard, however, believes that the benefits of the deal will be even bigger.