RE:RE:Analyst Recommendation BUY
K-Bro Linen Inc(KBL-T)
25/07/2024
Not the most exciting until you look under the hood. Its M&A cadence is picking up with more deals done recently. Stable business with long-term contracts, recurring revenue. Hospitality, but also healthcare. Finally starting to see more volume since Covid. Great business, generates a lot of cash, yet trades at only 6-6.5x EBITDA. Right in the crosshairs of private equity.
Once it makes an acquisition, it can use its size, scale and know-how to grab more contracts from that geographic area. Don't forget -- they have to pick the stuff up and then deliver it after they clean it. That know-how is really valuable, and they can do it at quite a margin. 15-20% EBITDA margins on contracts.
Other Services
James Telfser
$35.030
Owned