05:14 PM EDT, 05/13/2025 (MT Newswires) -- K-Bro Linen ( KBRLF ) on Tuesday after trade reported lower first-quarter adjusted earnings on higher revenue, while saying separately it is acquiring UK-based Star Mayan to create a top-three player in the U.K. market.

K-Bro which provides laundry and linen services to hospitals and hotels, said its adjusted profit, excluding most one-time items, narrowed to $3.4 million, or $0.32 per share, in the period, from $3.6 million, or $0.34, last year.

Revenue rose 13% to $91 million over the same period.

K-Bro will pay its regular monthly dividend of $0.10 per share on June 13.

Separately, K-Bro has signed an agreement to acquire U.K.-based Star Mayan for 107.2 million pounds ($199.1 million). Star Mayan owns three commercial laundry businesses in England, serving the healthcare and hospitality markets. According to a statement, the acquisition is cash-free and debt-free.

The company will raise $70 million in a bought-deal offering of subscription receipts. The underwriters have also been granted an over-allotment option, which if fully exercised, would raise the total to $80.5 million.

"The acquisition, combined with K-Bro's existing U.K. businesses, Fishers and Shortridge, creates a top three national platform in the attractive U.K. market serving both healthcare and hospitality customers," said chief executive Linda McCurdy.

K-Bro shares closed up $0.41 to $36.30 on the Toronto Stock Exchange.