» Political dirty laundry may drive cuts
A Textile Rental Service Association white paper for long-term care readers cites increasing political scrutiny of the Medicare and Medicaid systems as one reason to outsource laundry. TRSA said that programmatic cuts, added workplace safety challenges, and wage and regulation uncertainty all add pressure on laundry operations. In recent years, long-term care injury and illness rates did not fall faster than the rate for all industries. The sector has a total incident rate at twice the level of all businesses, and days away from work, reassignment or transfer in the 2.5x range. Accordingly, TRSA warned that long-term care managers will have to devote substantial resources to injury prevention if they keep laundry in-house.
» York Capital-backed Healthcare Linen Services Group acquires Linen King
Healthcare Linen Services Group, a portfolio company of York Capital Management’s private equity group and a provider of healthcare laundry services in the Midwest and Central United States, announced that it has acquired Linen King, the largest independent provider of healthcare laundry services in the South Central part of the US. HLSG said that the acquisition expands the company’s operations into “attractive” markets and adds new major customers.
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 almost 1,000 customers in 19 states.
» Alliance Laundry Systems closes on purchase of Laundry Equipment Services
Alliance Laundry Systems, a leader in commercial laundry equipment, has expanded on an already strong direct distribution base with the acquisition of Laundry Equipment Services. Alliance closed on the purchase at the end of 2022.
The acquisition is Alliance’s latest move in a strategy to bring what it called “extraordinary service and factory support to expanding markets where there is an opportunity to partner with exceptional people.” This is Alliance’s fifth distributor asset acquisition in the past two years.
