The Cheshire-based owner of dry-cleaning chain Johnson Cleaners has bought a textile services business for £15m as it seeks to expand its geographical reach and boost production capacity across central England.

Johnson Service Group said that the deal further extends its reach within the hotel sector following the recent acquisitions of Ashbon and London Linen.

The group has purchased the entire share capital of Zip Textiles (Services) for a cash consideration of £15m on a debt-free cash-free basis. The deal also includes £2.7m of additional debt in relation to the financing of recently installed processing equipment.

Zip serves the high-volume hotel and leisure sectors from its processing plant in Birmingham.

Johnson Service Group told investors that the transaction complements its existing Bourne business in providing geographical reach, operational efficiencies and additional production capacity for central England, with the potential for further expansion in the future. It added that the main focus of the acquisition is to improve operational capacity and extend its reach among hotel customers.

Zip reported revenues of £7m for the year to 31 January 2015. It operates from a freehold property with a book value of £4.4m, which was extended in 2015 and fitted out with new equipment at a cost of £2.7m.

Johnson Service Group expects the deal to be immediately earnings enhancing.

Chris Sander, chief executive of Johnson Service Group, said: "Zip is an extremely well-invested business that offers good synergies with Bourne, geographical reach and scope to increase processing capacity significantly.

"Having expanded our hotel and restaurant divisions through the acquisitions of Ashbon and London Linen, the addition of Zip to the JSG family marks the latest milestone in our growth strategy."

Johnson Service Group is headquartered at Preston Brook in Cheshire.

Sue Russell and Richard McKay of Hill Dickinson acted on behalf of Johnson Service Group.