ST. LOUIS — Angelica Corp. has authorized investment banker Morgan Joseph & Co. to pursue a possible sale of the company. Morgan Joseph will be soliciting indications of interest from both strategic and financial buyers.
Facing pressure from shareholders, Angelica enlisted Morgan Joseph in February 2006 to assist the provider of outsourced linen management services in reviewing its strategic alternatives. Angelica recently extended that arrangement through next June.
Angelica says it provides laundry services, linen and apparel rental, and on-site linen management services to a customer base of approximately 4,175 healthcare providers in 23 states. It also serves some hospitality customers to a more limited extent.
In other news, as part of an agreement Angelica entered into with Steel Partners in 2006 to settle a proxy contest for that year’s annual meeting, the board has elected Ronald J. Kruszewski, chairman of Stifel Financial Corp., as nonexecutive chairman of the board, and John J. Quicke, a representative of Steel Partners, as vice chairman.
Steve O’Hara continues as Angelica’s president and chief executive officer.
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