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FOR IMMEDIATE RELEASE
ST. LOUIS , MISSOURI
March 22, 2005
Angelica Acquires Royal Institutional
Services
Largest Healthcare Linen Service Provider in New
England
ST. LOUIS, Missouri (March 22, 2005) - Angelica Corporation (NYSE: AGL),
announced today that it has acquired Royal Institutional Services, Inc. and its
affiliate The Surgi-Pack Corporation (together "Royal"). Terms of the
transaction were not disclosed.
Royal is the largest healthcare linen services company in New England,
providing full linen management services to the healthcare industry with annual
revenues of approximately $45 million. Royal provides its healthcare services
out of two Massachusetts facilities, in Somerville and Worcester. Combined with
Angelica's existing Pawtucket, RI and Ballston Spa, NY facilities, the
acquisition will more than triple Angelica's presence in the New England region.
Morgan Joseph & Company advised Angelica on this transaction.
Steve O'Hara, Angelica's President and CEO commented, "We are delighted to
welcome the Royal customers and associates to the Angelica family. Royal has
done an excellent job providing unsurpassed service to the New England
healthcare community and we look forward to continue that tradition. We are
pleased that the Royal owners - Mark Johnson, Mark Liebovitz and Shawn Ryan -
have agreed to assist Angelica in executing a smooth transition for Royal's
customers and employees."
Mr. O'Hara continued, "The acquisition is consistent with our stated growth
strategy in the healthcare market. Furthermore, Royal meets our previously
disclosed acquisition criteria for an EBITDA multiple, return on net assets and
accretion, although it was slightly below our targeted 15% internal rate of
return criteria. As with our other transactions, we expect modest accretion in
the first year due to transitional costs and more significant accretion in the
second year. The purchase price was financed from Angelica's existing line of
credit."
Angelica Corporation, traded on the New York Stock Exchange under the symbol
AGL, is a leading provider of textile rental and linen management services to
the U.S. healthcare market. More information about Angelica is available on its
website, www.angelica.com.
Forward-Looking Statements
Any forward-looking statements made in this document reflect the Company's
current views with respect to future events and financial performance and are
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements are subject to certain risks and
uncertainties that may cause actual results to differ materially from those set
forth in these statements. These potential risks and uncertainties include, but
are not limited to, competitive and general economic conditions, the ability to
retain current customers and to add new customers in competitive market
environments, competitive pricing in the marketplace, delays in the shipment of
orders, availability of labor at appropriate rates, availability and cost of
energy and water supplies, the cost of workers' compensation and healthcare
benefits, the ability to attract and retain key personnel, the ability of the
Company to complete the sale of the Life Uniform segment under financial terms
and conditions currently anticipated, the ability of the Company to accomplish
its strategy of re-directing its resources to its healthcare linen management
business in a timely and financially advantageous manner, unusual or unexpected
cash needs for operations or capital transactions, the effectiveness of certain
expense reduction initiatives, the ability to obtain financing in required
amounts and at appropriate rates, the ability to identify, negotiate, fund and
integrate acquisitions, and other factors which may be identified in the
Company's filings with the Securities and Exchange Commission.
For additional information
contact:
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CONTACT:
JIM SHAFFER
CHIEF FINANCIAL OFFICER
COLLEEN HEGARTY
DIRECTOR OF INVESTOR RELATIONS
ANGELICA CORPORATION
TELE: (314)
854-3800
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JOHN
MILLS
INTEGRATED CORPORATE RELATIONS, INC.
(310) 395-2215 |
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