Clean Linen Services has acquired Stevens Hatherley Holdings, trading as Paragon Laundry, for an undisclosed sum.
The Maidenhead, Berkshire, UK-based provider of laundry services is one of the UK’s leading operators in the commercial B2B laundry sector, operating in both the linen and workwear rental markets. Clients range from independents to leading global branded businesses from the hotel, restaurant, catering, food manufacturing, engineering and pharmaceutical industries.
Paragon is one of the UK’s largest independent linen and garment rental providers and a shareholder of the Brilliant Laundry Group. Paragon services many of the UK’s leading hospitality and workwear clients across a large geographical region of the UK. The acquisition broadly doubles the size of the Clean Linen Services business, which now supports nine laundries across the UK.
The acquisition of Paragon Laundry follows the purchase of Watford Launderers and Cleaners in October 2015.
Clean Linen Services now has an annual revenue of around £67m and more than 1,350 employees delivering 130,000 workwear items and four million linen items each week.
The firm was advised by M&A and debt advisory firm Livingstone. Clean Linen Services is also backed by MML Capital Partners. Debt facilities were provided by Permira Debt Managers and Santander Corporate Banking.
Jason Miller, CEO, Clean Linen Services, said: 'This is a very exciting and strategic acquisition for Clean. The geographical synergies are excellent and this acquisition will significantly extend our UK coverage. The transaction further extends our ownership of the Brilliant Laundry Group to become the single largest shareholder.
'Livingstone was invaluable throughout the process, allowing us to focus on our acquisition and integration programme, safe in the knowledge that they would deliver the optimal financing package.'
Luke Jones, Partner, MML Capital, added: 'The acquisition of Paragon Laundry is the first step in executing our value growth strategy for Clean. It was critical to ensure that we found the right debt partner which could deliver a financing package flexible enough to accommodate our future plans. Livingstone impressed us with its knowledge of the debt markets, structuring creativity and commitment to supporting us at every stage of the debt raise process.'
Bill Troup, Managing Director Debt Advisory, Livingstone, concluded: 'Clean’s debt requirements were relatively complex and we are delighted to have helped Clean and MML to successfully complete this acquisition and fund their future activities.'
