ATLANTIC CITY, N.J. — Atlantic City Linen Supply and Brady Linen Services have merged to serve the hospitality markets on the East Coast and in the Las Vegas area. The merger follows AC Linen’s early 2014 acquisition of Royal Hospitality Services, an outsourced hospitality linen service based in the Boston area.
Between the three companies, 15 facilities are servicing the Las Vegas, Philadelphia, Boston, Atlantic City and Norwich, Conn., areas. A 16th facility will come online in the Bahamas this year.
Eric Goldberg, co-CEO of Atlantic City Linen, tells American Laundry News that while a marketing campaign will be rolled out later this year to introduce a corporate-level brand, the regional brands will remain the same.
He says all three companies “have great reputations and legacies in their respective markets and it’s important for us to maintain their identities and culture.”
No employees were let go as a result of the merger, and more will “certainly” be hired as the companies expand, according to Goldberg.
“All of the senior executives are staying in place, as are the operators, so it’s really three regional laundries coming together under one new corporate-level brand, and working together to integrate and harness best practices across the platform,” he adds.
J.R. Garcia, formerly director of textile services at Walt Disney Parks and Resorts, was hired as executive vice president of operations for the eastern region, and Terry Satchwell, previously with Milnor, has joined the company as executive vice president of operations for the West Coast.
Goldberg says the merger was attractive to both companies, since they shared similar “family-business underpinnings” and cultures, and both wanted to “diversify geographically.”
“One of the really neat things for our customers is the ability to service them nationally, across many markets,” he says. “For example, if a hotel brand has properties on both coasts, say in Philly and Boston and Vegas, we can provide laundry service to all of their hotels—a service option no other company in our niche can provide.”
Alvarez & Marsal Capital Partners (AMCP) financed the merger, which included a $92.6 million senior secured term loan and a $20 million delayed draw term loan. Goldberg says AMCP provided the capital the company will need for “retooling and upgrading equipment” and for opening the new facility in the Bahamas this year.
The funding will also go toward expansion into other major U.S. hospitality markets. The company is currently “in talks for some new developments,” according to Goldberg.