ST. CHARLES, Ill. — Healthcare Linen Services Group (HLSG) reports it has entered into an investment partnership with York Capital in New York.
HLSG says it chose York as the new partner because of its experience in both healthcare and facility services.
The partnership will allow HLSG to continue its path from “Good to Great” by bringing resources and funding for additional investments in automation, training and acquisitions that accelerate growth into new geographies.
“I am looking forward to our new partnership with York Private Equity and the growth opportunities they can provide in both capital and expertise,” says Joe LaPorta, CEO of HLSG. “Today’s healthcare customers demand sustainability, redundancy and scale to support their mission of quality care and geographical expansion. HLSG will leverage this new partnership with York to solidify our footprint and enter new geographies via acquisition.
“We will continue to invest in automating our existing facilities, accelerate our growth and continue our commitment to provide the highest level of quality and service to our customers.”
Founded in 1915, HLSG is an outsourced provider of linen management solutions that partners with healthcare administrators, clinicians and staff across the Midwest and Central United States to deliver a wide variety of comfortable, bacteria-free linens to thousands of hospitals, physician offices, surgery centers and nursing homes.
The company operates 11 state-of-the-art processing plants across four regional brands—Logan’s Linens and Logan’s Uniform Rental, in Shelbyville, Kentucky; Superior Health Linens in Cudahy, Wisconsin; and Textile Care Services in Rochester, Minnesota—that manage more than 185 million pounds of healthcare linen on an annual basis for more than 500 customers in 12 states.
“HLSG is one of the leading outsourced healthcare linen providers both regionally and nationally,” said Seth Pearson, managing director at York Private Equity. “Our investment in the Company aligns with our goal of backing strong management teams with additional capital to drive value for their customers, enter new markets, and execute on their growth strategy.”
Harish Nataraj, managing director at York Private Equity, adds, “We are thrilled to partner with the team at HLSG as we work together to pursue the next chapter of growth for the company. This investment represents an attractive opportunity to create value for all of the company’s stakeholders given York Private Equity’s extensive experience in both the healthcare and facilities services sectors.”
HLSG is the fifth platform investment completed in the last 12 months and the seventh since inception by York Capital’s middle-market private equity fund, York Special Opportunities Fund III, L.P., an $800 million dedicated fund raised in April 2020.
Solomon Partners acted as the financial advisor to York Private Equity. Lincoln International and Stephens Inc. acted as the financial advisors to HLSG.
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