York Capital-Backed Healthcare Linen Services Group Acquires Linen King
ST CHARLES, Ill.--(BUSINESS WIRE)--Jan 5, 2023--
Healthcare Linen Services Group (“HLSG” or the “Company”), a portfolio company of York Capital Management’s private equity group (“York Private Equity”) and a leading provider of mission-critical healthcare laundry services in the Midwest and Central United States, today announced it has acquired Linen King, the largest independent provider of healthcare laundry services in the South Central part of the U.S. The acquisition expands HLSG’s operations into attractive markets and adds new major customers for HLSG to service. As part of the transaction, Seaport Capital, a New York-based private equity firm that acquired Linen King in 2019, will receive shares in HLSG. Terms of the transaction were not disclosed.
Founded in 1999, Linen King operates the largest independent network of healthcare laundries in the South Central part of the U.S., serving approximately 460 customers across seven facilities in five states. Linen King processes approximately 100 million pounds of healthcare laundry annually at facilities located in Arkansas, Oklahoma, Missouri, Kansas, and Tennessee. Chris Corcoran, Linen King’s Chief Executive Officer, will remain with the business and serve as Regional Chief Operating Officer of HLSG.
Following this transaction, HLSG will operate 21 linen processing plants across six premier regional brands – Logan’s Linens, Logan’s Uniform Rental, Superior Health Linens, Textile Care Services, Reino, and now Linen King – that process approximately 350 million pounds of healthcare linen on an annual basis for nearly 1,000 customers in 19 states.
“This partnership reaffirms our commitment to executing on our growth strategy, which includes expanding our geographical reach into new contiguous markets, increased processing capacity, and, ultimately, our ability to service customers in a more comprehensive way,” said Joe LaPorta, President and CEO of HLSG. “Importantly, the Linen King brand will stay intact and remain under the operational leadership of Chris, who will bring his proven industry operating expertise to HLSG.”
“The addition of Linen King bolsters HLSG’s leadership position in the healthcare linen industry, and we will continue to support the company’s organic and M&A strategies,” said Seth Pearson, Managing Director of York Private Equity.
Mr. Corcoran added, “This is an exciting day for Linen King and our employees, and we look forward to joining the HLSG family. Importantly, HLSG has an outstanding reputation and shares our values and commitment to providing customers with the best service in the industry.”
Drew Meyers, a Seaport Capital Partner who will be joining the HLSG board, stated, “We are thrilled to join HLSG as a meaningful investor and continue to support Linen King in its next stage of growth under the HLSG umbrella.”
The Linen King transaction represents HLSG’s fourth acquisition since York Private Equity made a strategic growth investment in March 2022, and follows the October 2022 acquisition of Reino Linen Service, a premier provider of healthcare linen solutions.
About Healthcare Linen Services Group
Healthcare Linen Services Group (HLSG) is a leading provider of linen management services to the healthcare and hospitality industries. Following the transaction, HLSG will operate six premier regional brands, Logan’s Linens, Logan’s Uniform Rental, Superior Health Linens, Textile Care Services, Reino, and Linen King. For Additional Information, visit https://healthcarelinensg.com/.
About Linen King
Headquartered in Tulsa, Oklahoma, Linen King was founded in 1999 by Leonard and LK McCullough and currently processes over 100 million pounds of textile products annually for hospitals and medical facilities throughout the south and central United States. Linen King provides a wide range of customized laundry solutions for its clients out of its seven processing facilities in Arkansas (Conway and Springdale), Kansas (Wichita), Missouri (Columbia), Oklahoma (Midwest City) and Tennessee (Memphis and Ooltewah). For additional information, visit https://www.thelinenking.com/.
About York Private Equity
York Private Equity, the private investing arm of York Capital Management, primarily targets control investments in middle-market businesses in partnership with founders and entrepreneurs to help facilitate and support organic and inorganic growth in industries such as healthcare services, financial and business services, consumer/retail, and industrials. York Private Equity has 14 dedicated team members and is currently investing out of York Special Opportunities Fund III, L.P., an $800 million middle-market private equity fund raised in April 2020. Since inception in 2008, York Private Equity’s middle-market strategy has completed over 50 investments with aggregate transaction value in excess of $4 billion. For more information please visit: https://www.yorkcapitalpe.com.
About Seaport Capital
Founded in 1997, Seaport Capital is a lower middle-market buyout firm that invests in communication infrastructure and services, business and information services, and media companies (the “Focus Sectors”). Seaport typically invests $10 to $40 million of equity capital in companies generating EBITDA between $3 and $15 million. Seaport is currently investing through Seaport Capital Partners VI, a 2020 vintage fund. Seaport’s substantial industry expertise and investing experience enable it to develop successful strategies in partnership with management teams; its relationships and professionals help achieve them. Nearly all of Seaport’s platform investments have been owned by founders or entrepreneurs seeking a collaborative institutional partner to provide the financial and operational resources to grow their businesses and execute on a successful strategic plan. For additional information, visit https://www.seaportcapital.com.
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KEYWORD: ILLINOIS NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES HEALTH OTHER HEALTH FINANCE
SOURCE: York Capital Management
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PUB: 01/05/2023 08:30 AM/DISC: 01/05/2023 08:32 AM