Ladies and gentlemen, my name is Michael Percy and I am a Director of K-Bro Linen Inc. It gives me great pleasure to welcome you today to our 2025 annual meeting of shareholders. Joining me in presenting today are Linda McCurdy, President and CEO, and Kristie Plaquin, CFO. We are holding the meeting today in a virtual only format, which will be conducted via live audio and a slideshow webcast. Shareholders will have an equal opportunity to participate at the meeting online and ask questions live. This format was chosen with a view to maximizing shareholder attendance and making the meeting more accessible to all shareholders, regardless of their geographic location. On behalf of the board, I wish to express thanks to those shareholders who have submitted their proxies in advance of today's meeting.
If you have logged into this meeting with a control number or username provided to you by TSX Trust Company, please be sure to vote on the resolutions put forward before the meeting today. As this meeting is being held virtually via live audio webcast, we think it is necessary to set out a few rules for the orderly conduct of business. First, questions in respect of a motion can be submitted by a registered shareholder or duly appointed proxy holder using the questions module of the virtual platform. Two, when asking a question, please indicate your name and which entity you represent, if any. Three, questions will be read aloud by the secretary and addressed during the question period at the end of the meeting, provided that questions regarding procedural matters or directly related to the motions before the meeting may be addressed during the meeting.
Four, for the purpose of the meeting today, voting in all matters will be conducted by a single electronic ballot. Registered shareholders and duly appointed proxy holders will be asked to vote on each business item. Only registered shareholders and duly appointed proxy holders to the corporation are permitted to participate in the voting. Five, when you are asked to vote, you will receive a message on the virtual interface requesting you to register your votes. You will have only a certain amount of time to do so when the polls open. We will now proceed with the formal portion of today's meeting. To expedite the formal part of the meeting, I will move and second all motions following the formal meeting. Linda McCurdy, President and CEO of the corporation, and Kristie Plaquin, CFO of the corporation, will give a short presentation.
I now call to order the Annual General Meeting of the corporation shareholders. With the consent of the meeting, I appoint Kristie Plaquin, the corporation's Chief Financial Officer, as secretary of the meeting. With the consent of the meeting, Kristine Calesso from TSX Trust Company will act as a scrutineer to report on the number of common shares at this meeting and to tabulate the votes on any ballot taken at this meeting and to report therein to the chairperson of the meeting. Miss Plaquin, can you please confirm the presence of a quorum?
Mr. Chair, I've been advised by the scrutineers that there are present by proxy a sufficient number of persons holding a sufficient number of shares entitled to vote at the meeting to constitute a quorum. As there is a quorum present, this meeting is regularly called and properly constituted for the transaction of the business.
Thank you, Miss Plaquin. I hereby declare that this meeting has been duly convened and properly constituted to transact the business for which it has been called. Accordingly, unless there is an objection, I will dispense with the reading of the notice of meeting. I direct that a copy of the notice with proof of mailing be kept by the secretary with the minutes of the meeting. The purpose of today's meeting are set out in the management information circular dated April 8, 2025, copies of which were mailed to shareholders together with the notice of the meeting and the form of proxy. Copies of the management information circular and other meeting materials are available on the corporation's website and under the corporation's profile on the SEDAR website.
Voting on the items of business to come before today's meeting is being conducted by ballot via poll via a single electronic ballot that is now available on the web portal. Only registered shareholders and duly appointed proxy holders are able to vote or ask questions. Voting can only be done through the virtual voting platform on the webcast. If you are a registered shareholder or proxy holder and wish to vote, click the voting icon at the top of the webcast page. Voting can be completed at any time from now until the polls are closed at the end of the formal business of the meeting. If you've already voted in advance of the meeting and do not wish to change your vote, you do not need to vote again during the meeting.
The polls are all now open to those who have not yet voted. We encourage you to vote now. Questions can also be submitted through the webcast platform. Click the question icon at the top of the webcast page. Type in your question in the text box at the bottom of the messaging screen, and then click the Send button. To ask a verbal question, click on the Request to Speak button in the Broadcast tab. Allow your browser to access your microphone. Ensure you have the correct devices connected, then click the green check mark. You will be in queue for the moderator while continuing to watch the broadcast. When your connection has been confirmed, you will be called upon to ask your question and unmuted automatically. If your question relates to a specific motion, please start your question by identifying the motion.
We will respond to questions relating to specific motions before the closing of the polls, and we'll save all other questions for the general question- and- answer period at the end of the presentation on the corporation, following the formal portion of the meeting. We will receive the questions and read them out in order for everyone to be aware of the question being addressed. If we have a number of questions or all that are the same or very similar, we will consolidate the questions. We will endeavor to address all general questions. However, please note that due to the constraints, time constraints, we may not be able to do so. If you have questions, we encourage you to submit them now. Questions can be submitted throughout the meeting.
Finally, we would like to remind you that our answers to your questions and our presentation may contain forward-looking information. By its nature, this information contains forecasts, assumptions, and expectations of our future outcomes, which are subject to the risks and uncertainties discussed more fully in our public disclosure filings. We will now go through each of the items on the agenda in turn. As noted earlier, to further expedite the formal part of the meeting, I will move all motions and no such motions will need to be seconded. I now declare that this meeting is regularly called and properly constituted for the transaction of business. We now move to the formal part of today's agenda. As mentioned earlier, the polls are open for voting on all matters of business. The first item of business is the tabling of the annual consolidated financial statements of K-Bro Inc.
As at December 31, 2024, and for the year then ended, together with the reports therein of the management and auditors of the corporation. A copy of these documents was made available to all shareholders of the corporation, along with the corporation's notice of meeting and information circular, dated April 8, 2025. Unless there is an objection, I will dispense with the reading of the auditor's report. Hearing none, I continue. The annual report will be tabled at this time, but I would ask that any questions you may have arising from the annual report or the financial statements be raised later when the shareholder questions are entertained. I will entertain questions with respect to the financial statements of the corporation in the general question period. We now move to the next point on today's agenda.
The next matter to be acted upon is the election of five individuals to the board of directors. As per the management information circular, Mr. Matthew Hills, Mr. Steven Matyas, Mr. Michael Percy, Ms. Linda McCurdy, and Ms. Elise Rees have been nominated as directors for the ensuing year or until their successors are elected or appointed. Each of the persons nominated has confirmed that he or she is prepared to serve as a director. Each of them qualifies as a director under the provisions of the Business Corporations Act of Alberta. The motion to elect the five nominees is now on the floor. The act requires that the board of directors be elected. Proxies have been solicited for each of the five proposed qualified persons listed in the management information circular.
The form of proxy for voting on the election of directors sets out each proposed nominee separately and allows shareholders to vote for each director individually. Is there any discussion on the motion or additional nominations? Thank you. As mentioned at the beginning of this meeting, voting today will be conducted by a single electronic ballot. We will therefore continue with the next item of business, which is the appointment of the corporation's auditors, and you will be prompted to vote on the election of each proposed director after the presentation of all business items for the meeting. Unless there are any questions or discussions, I will move to the next item of business.
The next item of business is the reappointment of PricewaterhouseCoopers LLP chartered accountants as the auditors of the corporation for the ensuing year and to authorize the directors of the corporation to fix the remuneration of the auditors. I move and second that Pricewaterhouse LLP be appointed auditors of the corporation until the next annual meeting of the shareholders, and that the board of directors be authorized to fix remuneration. The motion is now on the floor. You will be prompted to vote on the reappointment of the auditors after the presentation of all business items of the meeting. Unless there are any questions or discussions, I will move to the next item of business. The next item of business is to adopt the amendments to K-Bro's long-term incentive plan. I move and second that the amendments be adopted and approved. The motion is now on the floor.
You will be prompted to vote on the amendments to K-Bro's long-term incentive plan after the presentation of all business items for this meeting. Unless there are any questions or discussion, I will move to the next item of business. Hearing none, a s previously mentioned, voting today will be conducted by a single electronic ballot. You will now be prompted to register your vote in respect to each of today's business items for this meeting. Please register your vote by accessing the voting page when prompted, and pressing the for or withhold buttons next to the name of each director and next to the resolution with respect to the appointment of PricewaterhouseCoopers LLP as the corporation's auditors. When prompted, please press on the for or against buttons next to the amendment for the long-term incentive plan.
Once the electronic balloting closes, the voting page will disappear and your vote will be automatically submitted. We will now take a short pause to answer any questions that have been submitted and to permit any registered shareholders or proxy holders who has not already done so to record their votes on the motions before the meeting. The polls will close in 30 seconds. The polls are now closed. I have now received the preliminary scrutineer's report with respect to the election of directors. I am advised by the scrutineers that each of the proposed nominees has been duly elected. With respect to the resolution to appoint the auditors, I'm advised by the scrutineers that this resolution has been duly carried. With respect to the amendment to the long-term incentive plan, this resolution has been duly carried.
The scrutineer will prepare the scrutineer's report following the completion of the meeting, and we will announce the results for the meeting in a press release in accordance with the policies of the TSX and file the press release on SEDAR. Is there any other formal business to be properly brought before this meeting? If there's no further business to be brought before this meeting, I move and second that the formal portion of today's meeting be concluded. I will now call upon Linda McCurdy, President and CEO of the corporation, and Kristie Plaquin, CFO of the corporation, to lead a discussion of the corporation and a review of our 2024 annual and first quarter 2025 results.
Thank you, Mr. Chairman, and thank you for joining us for our 2025 AGM. Presenting today are myself, Linda McCurdy, President and CEO, and Kristie Plaquin, Chief Financial Officer. Before we begin, we'd like to remind everyone that this webcast contains forward-looking information, and we would draw your attention to page two of the investor presentation for additional details on forward-looking information. For a bit of background, K-Bro was the largest healthcare and hospitality laundry and linen processor in Canada, and with the acquisition of Fishers, Shortridge, and most recently, Star Mayan, we are one of the top three laundry platforms in the U.K. K-Bro started over 70 years ago in Edmonton and as a family business. Subsequently, it was sold to two different PE firms in the 1980s and 1990s, who owned them until the company was taken public in 2005.
Prior to the acquisition of Star Mayan, we operated 18 facilities and three distribution centers, three facilities and two distribution centers in Canada and seven facilities in the U.K., five in Scotland and the Northeast of England with our Fishers acquisition and two facilities and a distribution center in the Northwest of England through the acquisition of Shortridge. It is this network of strategically positioned modern facilities that enables us to provide the critical services required by our healthcare and hospitality customers. Our ongoing reinvestment in the latest equipment and technologies enables us to provide the highest levels of service and quality to our customers.
Most recently, on May 13th, 2025, we announced the transformational acquisition of Star Mayan. As a backdrop, we initially entered the U.K. market through the acquisition of Fishers in 2017, with the vision of building a national platform for the further consolidation in a highly fragmented, attractive market. We continued on that strategy through the acquisition of Shortridge in 2024. This transformative acquisition of Star allows K-Bro to further achieve that vision. Combined with Star, this creates a top three commercial laundry platform in the U.K. with a strategic national presence. It establishes coast- to- coast healthcare and hospitality platforms in Canada and now the U.K. Star Mayan's healthcare-focused platform enhances K-Bro's pro forma revenue diversification by mix and geography, and is highly complementary to the existing Fishers and Shortridge businesses, which allows K-Bro to drive significant synergies.
This acquisition offers an attractive pro forma financial profile while maintaining commitment to our existing long-term leverage target of less than 3x and supporting continued growth. For an overview of our business model, this slide details the circular nature of our essential service, which operates seven days a week, 365 days a year. These pictures are from our Edmonton plant, which has become the blueprint for all of our new builds. In any of our new builds, like Regina, Toronto and Vancouver, we're achieving operating efficiencies from using the latest laundry technologies, including a water reduction of 30%, a 20% reduction in the consumption of natural gas, and productivity gains in the range of 30%.
Just to step back and provide you with an overview of our business, it is a simple and easy business to understand from an investor's point of view, yet it is highly specialized, automated, and has significant barriers to entry, which puts K-Bro in a very strong market position. We purchase linen and manage it on behalf of our healthcare customers. We collect the soiled linen from our customers and return it to our plants for processing 365 days a year. All of our plants follow Health Canada rules and regulations and achieve the highest standards of cleaning, adhering to HLAC and TRSA hygienically clean standards. These strict processing requirements create a barrier to entry for small processors to enter the healthcare market.
The first step in the process is to sort the linen by classification, as you would at home, to wash it in the most efficient and effective way. We wash the linen in tunnel washers, which are roughly 75 ft in length and are highly automated and controlled. We then wash and dry the linen, we iron and fold it, and repackage the linen for distribution back to the hospitals by set quotas or back to hotels, and send it back 365 days a year. In addition to these services, we also provide our core operating room services to major healthcare customers. Our core services is linen processing for reusable operating room linens, including surgical gowns, drapes, towels, and in some cases, sterilization of these products prior to delivery to the hospital.
Our services include the assembly of operating room packs specifically designed by the customer. For example, an open heart pack may contain surgical gowns, drapes, and towels, each in predetermined quantities, and that open heart surgery pack may differ from hospital to hospital. We see these value-added services as an area for potential growth as more of our clients focus on environmentally friendly initiatives and supply chain sustainability. In terms of our market, on this slide you'll see that both the Canadian and the U.K. markets are large with significant organic and acquisition growth opportunities in both the healthcare and hospitality spaces. We estimate the Canadian market to be approximately CAD 725 million, and we have approximately 35% of the market. Our private sector competitors have around 30% of the market and 35% remains insourced, which represents opportunities for further growth.
In the U.K., the market is roughly CAD 1.6 billion. Fishers and Shortridge have a 5% market share, with the majority of the business in Scotland and the northeast of England. Just to note that these figures exclude our Star acquisition, which we'll discuss later in the presentation. The remaining private sector competitors include Star, which have about 95%. Here you'll see a picture of our management team. The ability to provide a high-quality linen services program is made possible by our seasoned team, and this slide provides a snapshot of the team. I won't go into the entire details, but big picture, I've been with the company for more than 27 years now. Kristie, our CFO, has been with K-Bro for over 22 years.
Sean, our COO, has been with the company over 40 years and has been key to all aspects of business development, plant operations, and development of future operating talent. In addition to our senior management team, all of our GMs have extensive experience in the business. Many of our GMs have been with K-Bro for more than 25 years, and the combined years of experience of the group is roughly 230 years. Each member of the team is responsible for all elements of their respective business units, from revenue growth to the bottom line. We have the best operators in the business, and we're very proud of the team. In addition, we have significant breadth at the corporate and plant levels to provide this high level of service each and every day of the year. This slide represents a consolidated financial overview of K-Bro.
Again, just a quick note that this reflects our 2024 actual results and excludes the Star acquisition. Our revenue for 2024 was CAD 375 million, with approximately 52% of our revenues coming from healthcare and 48% from hospitality. In both 2020 and 2021, as the result of the impact of the pandemic, revenue decreased from historical levels, and as a result of the significant impact of the pandemic to the hospitality industry, our mix of revenue between healthcare and hospitality shifted to 72% healthcare and 28% hospitality. As we moved into 2022, restrictions were decreased, and as a result, we saw revenue back at historical levels. We finished fiscal 2024 with CAD 72 million in adjusted EBITDA.
Acquisitions have continued to play a meaningful part of our growth strategy, and I expect this will be the case going forward. We entered the Victoria, Montreal, and Quebec City markets through acquisitions. In the past two years, we've completed four additional acquisitions, excluding Star, which is not reflected here given it's not yet closed. However, we will discuss that in a bit. Three have been in the Canadian market, all of which were in the province of Quebec, and one of the acquisitions was in the U.K., which was Shortridge. The three Canadian acquisitions closed in March of 2023, November of 2023, and Shortridge in June of 2024, respectively, for net purchase price of approximately CAD 12 million each. Each of these are anticipated to generate CAD 10 million in revenue annually, of which CAD 25 million has already been reflected in our 2024 audit results.
The U.K. acquisition of Shortridge closed in April of 2024 for CAD 41 million, with a further earn-out of CAD 3.4 million available, for meeting certain targets in fiscal 2024 and 2025, of which approximately half has been paid. Shortridge is anticipated to generate CAD 20 million in additional hospitality revenue annually, of which CAD 17 million is reflected in our 2024 results. All four acquisitions were completed at multiples that were in line with historical transaction levels. Previous to this, at the end of 2017, we acquired Fishers in the U.K. for a net purchase price of CAD 60 million. As I mentioned before, Fishers is the largest player in Scotland and Northern England and gave K-Bro a strong foothold into the U.K. market. In addition to these, we made several additional bolt-on acquisitions in Calgary, Vancouver, and Scotland.
Here, you'll note our client base consists of large provincial healthcare authorities such as Alberta Health Services, as well as individually managed major hospitals such as SickKids in Toronto. We're also privileged to include national hoteliers such as the Fairmont Group, Fairmont Hotels, Four Seasons, Hyatt, Hilton, Delta, Marriott, to name a few of our clients. In the U.K., we're approximately 90% of our business is hospitality. Again, pre-Star acquisition. We service some of the same hotel chains, as well as Travelodge, Accor, Jurys, and Jurys Inn. We have very high retention rates and continue to excel at renewing our existing contracts with our valued customers. We have very high retention rates, up in the high 90 percentile range, and have been servicing some of our major customers for many, many decades.
As an example, we're on our fifth ten-year contract in Alberta. The long-term nature of our contracts helps us establish strong relationships and offers additional services to our customers, which further strengthen our position. This slide provides a snapshot of 2024 revenue, EBITDA segmentation between our Canadian, U.K. operations, as well as our healthcare and hospitality sectors. Again, this excludes the Star acquisition. From a revenue perspective, Canada represents approximately 70% of our revenue, and Fishers makes up the balance. As part of our overall service package, in addition to linen services, we provide integrated supplemental services such as floor-to-floor distribution, linen room management, and sterilization services. Here you'll see the capacity of our operations. Our decades of reinvestment in state-of-the-art facilities has provided us with a network of highly efficient operations that has helped us become the low-cost producer in each of our markets.
As you can see, we have excess capacity for growth to pursue new profitable business, maximizing the operating leverage and improving EBITDA margins by utilizing excess capacity. Our strategy remains focused on extending our core service to new regions and introducing new related services to existing and new customers. We've been successful in this strategy and have entered several new Canadian markets over the past decade. Most recently, through our acquisition of Shortridge in 2024, we entered the Northwest of England, and in May 2025, through the acquisition of Star Mayan, entered the Northeast Midlands and southern part of England. We've also introduced sterilization services to the Vancouver market from our new facility, whereby we sterilize our operating room linen packs, at our facility, a function that would historically be done by the hospital.
Due to the pandemic, we've seen a number of health systems convert to reusable products from disposable products, and we expect this to be a continuing opportunity into the future. As we discussed, we've reached the end of our aggressive strategic capital spending program to build new facilities and upgrade facilities that allows us to be the most cost-effective processor in our industry, and to add millions of dollars of new business through our efficient network of highly efficient plants. We'll also continue to focus on growth through acquisition, and we'll either consolidate the volumes into our existing facilities or operate them independently depending on the assets acquired. This slide speaks to the competitive landscape and trends that we have experienced over the past decades.
In addition to K-Bro, the competitive landscape includes independent, privately owned facilities, public and private sector central laundries, and public and private sector on-premise laundries. In some circumstances, there are some publicly traded companies in the U.K. Over the past decade, we've seen an ongoing shift to outsourcing laundry and linen services. This has been driven by several factors. Linen is considered non-core to a hospital's mission of patient care and a hotel's desire to provide an excellent guest experience. Significant capital and operating savings can be achieved through outsourcing as large laundry operators are able to achieve economies of scale. There is a desire to repurpose valuable square footage at both hospitals and hotels.
Specialization by experienced operators that use technology to manage inventory and report on linen usage, leading to better management of the entire laundry and linen supply chain is also a driver. We remain deeply committed to playing our role as a good corporate citizen in creating a sustainable future. In terms of our vision, we're proud of our history of responsible, innovative growth and are pleased to announce that we published our second Sustainability Report in 2024. We will continue to keep our focus on what matters, which is to deliver industry leading service, be a great place to work, continue to support our communities, and be a dependable partner. K-Bro's board oversees our ESG program, and the team itself consists of a diverse, experienced skill set throughout Canada and the U.K.
Our stakeholders set our agenda, and to ensure we are on track, we collect feedback from employees, customers, investors, and regulators. We focus on topics that are most important to everyone, and our priorities have been grouped into three pillars, people, partners, and planet. With this work, we're making a difference. We're putting people first by embracing our customer-centric culture, taking care of people, and embracing diversity. We're dependable partners by delivering our commitments, implementing responsible business practices, and responding to evolving trends. We embrace environmental stewardship by operating responsibly, reducing input and costs, and we follow best practices. We'll continue to embrace our ESG journey and advancing our sustainability agenda for the long run. In terms of a review of 2024, I'll highlight a few key factors.
We've successfully worked with our Canadian and U.K. customers to implement price increases to offset higher inflation-related costs that we saw throughout 2022. As the result of this, throughout the back half of 2023 and into 2024, we have been successful in restoring our margin profile back to 2019 levels. We've also been very focused on growth, as noted earlier. We completed two acquisitions in 2023 and two acquisitions in 2024. One of which included entering a new market. We also completed the syndication of our credit facility in March 2024, which provides for a CAD 175 million line of credit and a CAD 75 million accordion, resulting in significant increase in liquidity for future growth initiatives. We implemented a normal course issuer bid, and we also, as I mentioned, published our second Sustainability Report.
In terms of 2025 and our outlook, a few key themes will dominate. We anticipate seeing a continued positive outlook for the business as both healthcare and hospitality segments continue to experience steady growth profiles, EBITDA margins that will continue to follow historical seasonal trends. We continue to have a strong balance sheet and liquidity position to support growth, and obviously, a key focus will be the integration of our recent acquisition of Star Mayan. Kristie, I'll turn it over to you.
Thanks, Linda. On the left-hand side of this slide, with the exception of 2020 and 2021, which were impacted significantly by COVID, we'd like to highlight our steady increase in annual revenue. In 2024, we reported consolidated revenue of approximately CAD 374 million, which has more than doubled compared to CAD 159 million in 2014. This growth has come through new contract wins, acquisitions and organic growth in existing markets, alongside the acquisition of Fishers in 2017 and the four acquisitions we've completed in the past two years, Paranet, Villeray, Shortridge, and C.M. In 2024, as mentioned earlier, with the return to historic volume, historical volumes and the implementation of price increases to offset inflationary increases, we saw an increase in revenue of 16% from 2023.
On the right-hand side of the slide, for fiscal 2024, adjusted EBITDA was CAD 72.1 million. This represents an increase of approximately 24% on a year-over-year basis from fiscal 2023's adjusted EBITDA. You'll note a sharp increase in adjusted EBITDA in both 2023 and 2024 from 2022 levels. In 2022, as discussed previously, we faced significant inflationary pressure and geopolitical instability that had a negative impact on our cost structure, particularly on the utility, labor, and distribution front. We were very focused throughout 2022 and into early 2023 on securing price increases from our customers to offset the negative impact of these pressures and have seen the full benefit of these in the second half of 2023 and into 2024 as we transition back to historical margin levels.
This slide highlights our 2024 and Q1 2025 results. For 2024, revenue increased again to CAD 374 million or by 16% compared to 2023. For the three months ended March 31st, 2025, K-Bro's consolidated revenue increased by approximately 14% to CAD 91 million from CAD 80.2 million in the comparative period. This increase was primarily due to increased client activity in the hospitality segment, the impact of price increases across various markets, and the acquisition of Shortridge and C.M. For fiscal 2024, consolidated adjusted EBITDA increased in the year to CAD 72.1 million from CAD 58 million. This represents an increase of approximately 24% on a year-over-year basis from fiscal 2023 adjusted EBITDA.
When we look at Q1 2025, we saw a sizable increase in both adjusted EBITDA and adjusted EBITDA margin quarter-over-quarter from 2024, and we saw margin levels that were consistent with our base margins in 2019. In both periods, dividends declared remained consistent. Our trailing 12-month payout ratio is hovering around 30%, which, as we move forward, will decline as margins recover. Our ability to maintain our dividends is made possible through increasing market share through new customer contracts, extending core services to new markets through greenfield activity and targeted acquisitions, introducing new related services, and undertaking accretive strategic capital expenditures, and finally, controlling costs by entering into fixed supply contracts. We continue to evaluate the payout ratio and the dividend policy in the context of the current market environment.
For 2024, we continued to have moderately low levels of leverage with a funded debt-to-EBITDA ratio of just over 2x. Pro forma, with the acquisition of Star Mayan, our leverage level has increased to just over 3x. As part of this transaction, we further expanded our syndicated credit facility, adding a CAD 150 million term loan to the existing CAD 175 million revolver. Pro forma, after the acquisition of Star Mayan, we have approximately CAD 75 million in availability under our existing credit facility of CAD 325 million, plus a 50- million- dollar [accordion].
We'll now talk a little bit about the most recent acquisition of Star Mayan. We're absolutely thrilled to announce the transformative acquisition of Star, K-Bro's largest acquisition in our history. We'll now discuss the strategic rationale for the acquisition, an overview of Star, highlights of the combined business mix, a summary of the transaction, and financing details. Star and K-Bro have shared values in putting people first, being dependable partners, and environmental stewardship. We're excited to welcome the team to the K-Bro family and look forward to further supporting existing and new customers. Star Mayan, doing business as Synergy, Grosvenor, and Aeroserve, is a leading U.K. healthcare and hospitality laundry and linen processor, which K-Bro acquired for GBP 107 million or CAD 199 million.
We're particularly proud to be announcing the largest acquisition in K-Bro's history during K-Bro's 20th anniversary as a public company. This represents the start of a new and exciting chapter for K-Bro's next leg of growth. As a leading U.K. commercial laundry, Star operations are strategically located across the Northwest, Midlands, and South of England. It operates under the national Synergy LMS brand and the local niche brands of Grosvenor Contracts and Aeroserve Linen Services. It is a healthcare-focused business with stable recurring revenue that indexes to cost inflation. 69% of revenues come from healthcare, while 31% come from hospitality end markets. It maintains a highly diversified blue-chip customer base with no customer representing more than 8% of revenue. Customers include hospitals, healthcare facilities, NHS trusts, community trusts, airlines, marine ferries and hospitality providers.
Star has a track record of top-line growth and ability to drive profitability. On a trailing 12-month basis ended March 2025, Star generated GBP 94 million of revenue and GBP 14.2 million of linen adjusted EBITDA, including the impact of IFRS 16 leases. We're delighted with the experienced operational management team, with leadership depth across business segments and brands covering 1,200 employees from local communities. Pro forma the acquisition, K-Bro is expected to have approximately a 10% market share of the CAD 1.6 billion total U.K. market. It will truly have a footprint that allows K-Bro to provide coast-to-coast coverage through the combined 14 laundry facilities in the U.K.
This complementary footprint enables synergy realization and continued profitable growth through the opportunity to grow healthcare, hospitality and workwear nationally, and a strong presence to execute on various organic growth opportunities in what constitutes a highly fragmented market in the U.K. With the combination of Star, K-Bro's business profile is transformed on a pro forma basis represented by combined TTM March 2025 revenues of CAD 550 million and adjusted EBITDA of CAD 99 million, an expanded footprint with a combined 25 energy and water-efficient operating facilities with 4,000 diverse employees from local communities. The coast-to-coast platforms in Canada and the U.K. provides K-Bro with leading national platforms spanning two continents to drive continued growth.
The addition of Star means healthcare-focused business enhances K-Bro's revenue mix towards stable recurring healthcare revenue and a greater exposure to the U.K. market. For the trailing 12-month period ended March 2025, K-Bro's pro forma consolidated revenue mix would have been as follows. Geographic revenue mix would shift from 70% Canada and 30% U.K. to an even more geographic mix of 50% Canada and 50% U.K., representative of having two leading coast-to-coast national platforms. Business revenue mix would shift from 52% healthcare and 48% hospitality to 57% healthcare and 43% hospitality. For the trailing 12-month period ended March 2025, K-Bro's pro forma U.K. business revenue mix would shift from 6% healthcare and 94% hospitality to significantly more balanced mix of 43% healthcare and 57% hospitality.
In summary, I'd like to make a few final points and point out some of the key investment highlights. We have a deep industry experience and reputation that spans over 50 years. In addition, we have long-term relationships with all of our clients, which are backed by multi-year contracts for large portions of our healthcare and hospitality volumes. We continue to have a conservative financial position and credit profile with significant credit available to manage the current uncertain times and for various initiatives, including acquisitions. We have a state-of-the-art network of processing facilities in all of our major markets that will enable us to be the low-cost producer and add millions of dollars of additional revenue to profitably grow and increase margins. With that, I'd like to open it up for any questions anyone may have.
I confirm there's no questions at this point.
Thank you, Kristie. On behalf of the management team and the board of directors, I would like to thank everyone in attendance today. We look forward to connecting again next year. Thank you.