H.I.G. Capital has acquired Crothall Laundry Services from publicly traded Compass Group, a UK-based contract foodservice company.
Crothall Laundry is a national provider of outsourced laundry and linen management services to companies operating in the healthcare and hospitality sectors. The company manages a national network with 29 operating locations that service more than 550 customer accounts at 1,000 sites and processes more than 630 million pounds of linens annually.
Crothall, founded in 1991 and led by CEO Michael Barner, has more than 2,000 employees with a headquarters near Philadelphia in Wayne, Pennsylvania.
“This is an exciting event,” said Mr. Barner. “Over the last three decades, we have made substantial investments in our plants, infrastructure and capabilities while supporting the growth of leading healthcare organizations. Now, more than ever, our customers are increasingly relying on us to support their linen management and infection control needs. We are excited to work with H.I.G. Capital as we push ahead with our expansion plans.”
“Crothall is the clear leader in the laundry and linen management sector, serving healthcare institutions through the combination of best-in-class operations, scalable data-driven processes and a stringent focus on quality,” said Richard Stokes, a managing director at H.I.G. “These solutions have increasingly positioned Crothall as a critical partner to healthcare providers as they seek to improve the patient experience.”
H.I.G. specializes in providing debt and equity capital to small and medium-sized companies and invests in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses. Founded in 1993, H.I.G. has invested in more than 300 companies and has a current portfolio of 100 companies with combined sales of more than $30 billion. H.I.G. has $40 billion of equity capital under management and is headquartered in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, and Stamford.
In September 2020, H.I.G. held an above-target close of H.I.G. Capital Partners VI LP with aggregate capital commitments of $1.3 billion.
Compass Group (LSE: CPG) is a multinational contract foodservice company headquartered near London in Chertsey, UK. According to the company, it is the largest contract foodservice company in the world with operations in 45 countries and 600,000 employees.
© 2021 Private Equity Professional | January 5, 2021