BALTIMORE and BOSTON — Arctaris Impact Investors LLC reports it has made a follow-on growth equity investment in Up To Date Laundry.
One of the largest healthcare laundry facilities on the East Coast, Up To Date Laundry provides laundry services to healthcare providers across the Mid-Atlantic, including the University of Maryland Medical System, Johns Hopkins and Einstein Medical Center.
The investment in the laundry is part of the Arctaris Baltimore Program, a $25 million commitment to invest in Baltimore’s underserved neighborhoods, created in partnership with The Abell Foundation and Neighborhood Impact Investment Fund (NIIF) and with support from Erie Insurance (ERIE) through its investment in the Arctaris Opportunity Zone Funds.
In March 2021, Arctaris made an initial investment in Up To Date Laundry to aid the company’s continued growth and expansion.
Now, this additional growth equity investment from Arctaris will fund projects such as increased automation at the company’s main plant on Desoto Road, multiple energy efficiency improvements and the ability to purchase linens for new linen rental customers.
These upgrades will allow the company to create additional highly skilled jobs, improve production efficiencies and reduce overall energy consumption.
Up To Date Laundry is a long-standing business in Baltimore and is a significant driver of sustainable job creation, paying above-market wages and benefits.
Located in an economically distressed neighborhood with a 15.9% unemployment rate, the company has a diverse base of 200-plus full-time employees, as well as 300-plus temporary employees.
“Arctaris Impact Investors is a value-add financial partner who not only provides capital but supports the team, through its relationships, in the areas of business development and workforce training,” says Mark Carter, president and CEO of Up To Date Laundry.
The operation aims to add up to 50 jobs in Baltimore over two years.
With medical laundries deemed an essential service industry during the pandemic, Up To Date Laundry provided critical services allowing its hospital clients to focus their efforts on fighting COVID and facilitating safer care for patients.
In addition to the investments, the Arctaris Portfolio Services Group has actively worked with and advised Up To Date Laundry management in securing concessionary capital such as workforce development grants and obtaining Property Assessed Clean Energy (PACE) financing which upgrades current equipment to improve water utilization and reduce energy consumption. These improvements are projected to benefit not only the local water systems and the balance of aquatic life, but the anticipated reduction in greenhouse gas from energy production is 1,900MT CO2e annually.
“Up To Date Laundry is a prime example of a company seeking to balance its commitment to its customers, workers and the city of Baltimore, all while not compromising the health of the nearby ecosystem,” says Anita Graham, Arctaris managing director responsible for Maryland, eastern Pennsylvania, and Washington, D.C.
The Arctaris Phase I Baltimore Program has provided private sector investment for growing companies in Baltimore’s most challenged communities to help drive economic prosperity. As an anchor investor, The Abell Foundation committed $4 million in catalytic capital to Arctaris Baltimore.
“Arctaris Impact Investors supports companies that value people and communities in addition to business,” says Eileen O’Rourke, Abell’s CFO and director of impact investing.
“The Arctaris team offers their time, talent and connections to grow these high-impact companies, to create more jobs and to support vibrant and more inclusive communities.”
Additionally, NIIF committed $1 million in capital focused on a defined set of “eligible neighborhoods,” comprising 65% of Baltimore, and where the city has directed NIIF to deploy capital to accelerate a set of coordinated community revitalization efforts.
Lastly, ERIE Insurance’s investment in Up To Date Laundry through Arctaris is part of an $8 million commitment the company made to fund businesses and community development projects in underserved communities within the company’s footprint including Baltimore.
“We’re pleased to partner with Arctaris to make an Opportunity Zone investment in Baltimore’s Up To Date Laundry Inc.,” says Christina Marsh, chief diversity and community development officer at Erie Insurance. “When ERIE considers social impact investment opportunities, we seek out innovative companies that also align closely with our values.
“UTD’s humble beginnings servicing ships from New York in Baltimore Harbor and 75-year history of hiring local and giving back to the communities they serve are inspiring. We are pleased to be part of their growth.”
In addition to its Baltimore community partners, Calvert Street Partners, a middle market investment firm based in Baltimore, co-invested with Arctaris in Up To Date Laundry.
The almost $14 million Arctaris investment in Up To Date Laundry is the cornerstone of the $25 million Arctaris Phase I Baltimore Program.
Arctaris is currently sourcing new real estate, infrastructure and operating company opportunities to expand its mission and commitment to Baltimore.
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