K-Bro Linen Board Chair to Retire Amidst Record Growth, UK Expansion

EDMONTON, AB – May 01, 2026 – K-Bro Linen Inc. (TSX: KBL), Canada’s largest laundry and linen services provider, announced today a significant leadership transition, with Board Chair Michael Percy set to retire at the company's upcoming Annual General Meeting (AGM) on June 3, 2026. The change at the top comes as the company reports a period of unprecedented growth, fueled by a series of transformative acquisitions that have established it as a major force in the United Kingdom.

The company confirmed that the AGM will be held virtually and will feature presentations from President and CEO Linda McCurdy and CFO Kristie Plaquin. Percy, who has served as a director since 2015, will not seek re-election, marking the end of a long tenure that has seen K-Bro evolve from a Canadian leader into a formidable international player. The board is now tasked with navigating this change while continuing to execute its aggressive growth strategy.

A Changing of the Guard

The departure of a long-serving board chair often signals a pivotal moment for a corporation, and K-Bro is moving swiftly to ensure a smooth transition. In the announcement, CEO Linda McCurdy thanked the outgoing chair for his service. "On behalf of the Board and K-Bro, I would like to thank Michael for his valuable contributions over the years and wish him all the best in the future," she stated.

Percy’s tenure coincided with a period of significant strategic evolution for K-Bro. His leadership on the board helped guide the company through major market shifts and its ambitious international expansion. Shareholder confidence in his leadership was evident as recently as the 2024 AGM, where his re-election as a director was approved by an overwhelming 99.69% of votes.

In anticipation of this change and to support its expanding operations, K-Bro is proactively strengthening its governance structure. The company confirmed it is actively seeking an additional director to join the board, noting it has already "identified several excellent candidates with relevant industry experience." This search follows the appointment of another new board member in November 2025. A new chair will be elected by the board immediately following the June meeting, a decision that will be closely watched by investors as an indicator of the company's future strategic priorities. This focus on succession and board refreshment aligns with modern corporate governance best practices, which emphasize the need for diverse experience and proactive planning to steer a company through periods of growth and change.

Forging an Empire Across the Atlantic

While the leadership transition is a key headline, the context for this change is K-Bro's remarkable expansion, particularly in the United Kingdom. Once primarily known for its dominant position in Canada—with eleven processing facilities and a distribution centre across nine major cities—the company has strategically built a second pillar of growth in the UK.

This expansion began in earnest with the 2017 acquisition of Fishers, a well-established Scottish operator. The pace has accelerated dramatically in recent years. In April 2024, K-Bro acquired Shortridge Ltd., a historic firm founded in 1845 serving the hospitality sector in North West England.

However, the most significant move was the "transformative" acquisition of Stellar Mayan Ltd. in June 2025 for £107.2 million. This single transaction brought three major brands—Synergy, Aeroserve, and Grosvenor Contracts—under the K-Bro umbrella, instantly positioning the company as a top-three national laundry business in the UK. The deal not only expanded K-Bro's footprint with seven additional operating facilities but also strategically diversified its revenue, creating a near-perfect balance between its Canadian and UK operations. Post-acquisition, K-Bro's UK arm is projected to operate from 17 locations, employing around 2,000 staff, with the company anticipating over £2 million in annual synergies within two years.

Financial Strength and Market Confidence

This ambitious growth strategy is underpinned by robust financial performance. K-Bro has been on a hot streak, reporting record results for the third and fourth quarters of 2025. For the full year, the company saw revenue soar by 35.7% to $506.8 million. This growth was broad-based, with the healthcare division's revenue increasing by 41.2% and the hospitality sector growing by 29.5%.

Adjusted EBITDA, a key measure of operational profitability, climbed 36.9% to $98.7 million in 2025. While the substantial investment in the Stellar Mayan acquisition caused net debt to rise from $114.4 million to $214.2 million, it is viewed by analysts as a strategic deployment of capital to secure long-term growth. This sentiment is reflected in the market's reaction; following the Stellar Mayan announcement, K-Bro’s shares saw a notable increase, signaling strong investor confidence in the move.

The market's positive outlook is further solidified by analyst ratings. K-Bro currently holds a "Moderate Buy" consensus rating, with forecasts projecting its earnings to grow at 24.1% annually—more than double the Canadian market average. With the company scheduled to release its first-quarter 2026 results on May 5, all eyes will be on whether this impressive momentum has continued into the new year. The new board leadership will inherit a company that is not just stable, but in a powerful phase of expansion, tasked with managing this growth and delivering on the high expectations it has set in the market.