Johnson Service Group

In this pitch, analysts Albert Jansson, Nils Annborn and Axel Hockman present an investment
case for Johnson Service Group (JSG), the leading provider of textile rental and laundry services
in the United Kingdom. Through its market-leading positions in both Workwear and HORECA,
extensive processing infrastructure, and long-standing customer relationships, JSG has
established a resilient business model with multiple avenues for value creation. Using a
comprehensive valuation framework including DCF, trading comparables, precedent
transactions and an LBO analysis, the analysts estimate JSG’s enterprise value in the range of
GBP 932–2,244 million.

Key Takeaways
● JSG benefits from a leading position in the UK textile services market, supported by a
nationwide processing network, route density advantages and long-term customer relationships
that create significant barriers to entry.
● Following several years of substantial investment in automation, capacity expansion and
operational infrastructure, the company is entering a period where productivity improvements
and operating leverage are expected to drive meaningful margin expansion.
● Strategic acquisitions, operational efficiencies and cross-selling opportunities provide multiple
avenues for earnings growth, while the fragmented nature of the UK textile services market
creates a long runway for consolidation and shareholder value creation