JOHNSON Service Group has sold its dry cleaning business Alex Reid for £2.1m which will be used to further pay down group debt.
The Preston Brook-based group, which operates dry cleaning, workwear hire and facilities management services, sold Alex Reid to Christeyns UK.
Total annual revenues for Alex Reid to December 2011 were £12m, including £3.6m related to inter-company contracts.
Johnson Cleaners has signed a three-year supply deal with Christeyns on terms similar to those between Alex Reid and Johnson prior to the sale.
Christeyns is a major detergent supplier to the UK laundry market.
Johnson chairman John Talbot said today: “In July we announced the conclusion of a strategic review of our drycleaning business.
“As part of that review it was decided that Alex Reid was not a core business for the group going forward.
“We are pleased that we have secured a multi-year agreement to continue to use the services of Alex Reid under its new ownership.”
The Alex Reid brand operates mainly in the Leicester area.
Johnson Service Group will continue to operate its main UK high street drycleaning business following the Alex Reid disposal.
