EDMONTON, Dec. 12, 2013 /CNW/ - K‐Bro Linen Inc. ("K‐Bro" or the
"Corporation") announced today the award of a ten-year contract with
Health Shared Services Saskatchewan ("3sHealth") for laundry and linen
services for the Province of Saskatchewan. This award is the result of
K‐Bro being selected pursuant to 3sHealth's Request for Strategic
Partner ("RFSP") process that commenced in 2012.
The contract encompasses a comprehensive linen supply and service
program covering general, operating room and specialty linens as well
as delivery services to all facilities. Services under the terms and
conditions of this contract will commence during the second quarter of
2015. The contract is renewable for two additional terms of three years
at 3sHealth's option.
Concurrently with the signing of a services agreement with 3sHealth, the
Corporation has commenced project planning for the construction of a
state-of-the-art processing facility to be located in the City of
Regina and distribution centres in Saskatoon and Prince Albert. The
total expected costs of commissioning the processing facility,
including the distribution centres, are expected to be approximately
$22 million, including processing equipment and related construction
costs, as well as new linen and carts for the regional health
authorities. It is anticipated that the Regina facility will be
operational by Q2, 2015.
"We are excited to enter into a long-term contract with 3sHealth, as
partners focused on the needs of patients," said Linda McCurdy,
President & CEO. "It is rewarding to be selected in a competitive
process and to expand our existing partnership with the Saskatoon
Health Region throughout the Province. We wish to thank 3sHealth, the
regional health authorities, the Ministry of Health and the citizens of
Saskatchewan for their confidence in K‐Bro."
3sHealth was created in 2012 with a mandate to provide efficient,
customer-focused, quality, province-wide shared services to the
Saskatchewan health sector to and on behalf of the regional health
authorities and the Saskatchewan Cancer Agency.
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 healthcare institutions, hotels and other commercial
accounts. K-Bro currently operates eight processing facilities under
three distinctive brands, including K-Bro Linen Systems Inc., Buanderie
HMR and Les Buanderies Dextraze, in seven Canadian cities: Québec City,
Montréal, Toronto, Edmonton, Calgary, Vancouver and Victoria.
Additional information regarding the Corporation including required
securities filings are available on our website at www.k-brolinen.com and on the Canadian Securities Administrators' website at www.sedar.com; the System for Electronic Document Analysis and Retrieval ("SEDAR").
K-Bro est le plus important propriétaire et exploitant de buanderies au
Canada. K-Bro fournit une gamme étendue de services de buanderie aux
établissements de soins de santé, hôtels et autres clients commerciaux.
K-Bro exploite actuellement huit usines sous trois marques
distinctives, incluant K-Bro Linen Systems Inc., Buanderie HMR et Les
Buanderies Dextraze, dans sept villes canadiennes: Québec, Montréal,
Toronto, Edmonton, Calgary, Vancouver et Victoria.
Vous pouvez obtenir des renseignements supplémentaires sur la Société, y
compris les documents déposés auprès des autorités de réglementation,
sur notre site Web, au www.k-brolinen.com et sur le site Web des autorités canadiennes en valeurs mobilières au www.sedar.com, le site Web du Système électronique de données, d'analyse et de
recherche (« SEDAR »).
FORWARD LOOKING STATEMENTS
This news release contains forward-looking information that represents
internal expectations, estimates or beliefs concerning, among other
things, future activities or future operating results and various
components thereof. The use of any of the words "anticipate",
"continue", "expect", "may", "will", "project", "should", "believe",
and similar expressions suggesting future outcomes or events are
intended to identify forward-looking information. Statements regarding
such forward-looking information reflect management's current beliefs
and are based on information currently available to management.
These statements are not guarantees of future performance and are based
on management's estimates and assumptions that are subject to inherent
risks and uncertainties, which could cause K-Bro's actual performance
and financial results in future periods to differ materially from the
forward-looking information contained in this news release. These
risks and uncertainties include, among other things, (i) risks
associated with acquisitions, including the possibility of undisclosed
material liabilities; (ii) K-Bro's competitive environment; (iii)
utility and labour costs; (iv) K-Bro's dependence on long-term
contracts with the associated renewal risk, (v) increased capital
expenditure requirements; (vi) reliance on key personnel; and (vii) the
availability of future financing. Material factors or assumptions that
were applied in drawing a conclusion or making an estimate set out in
the forward-looking information include: (i) volumes and pricing
assumptions; (ii) utility costs; (iii) expected impact of labour cost
initiatives; and (iv) the level of capital expenditures. Although the
forward-looking information contained in this news release is based
upon what management believes are reasonable assumptions, there can be
no assurance that actual results will be consistent with these
forward-looking statements. Certain statements regarding
forward-looking information included in this news release may be
considered "financial outlook" for purposes of applicable securities
laws, and such financial outlook may not be appropriate for purposes
other than this news release.
All forward-looking information in this news release is qualified by
these cautionary statements. Forward-looking information in this news
release is presented only as of the date made. Except as required by
law, the Corporation disclaims any intention or obligation to update or
revise any forward-looking statements to reflect subsequent events or
SOURCE: K-Bro Linen Inc.
For further information:
President & Chief Executive Officer
Vice-President & Chief Financial Officer
K-Bro Linen Inc. (TSX: KBL)