The Sterling Group announced that it has completed the acquisition of Healthcare Linen Services Group from York Capital Management’s private equity arm.
HLSG is a regional provider of outsourced linen laundry and management services for healthcare institutions across the United States. Founded in 2009 and headquartered in St. Charles, Illinois, the company operates 20 processing plants across 13 states, primarily in the Midwest and Central U.S. Through six regional brands, HLSG delivers linen services to thousands of healthcare facilities, working closely with administrators, clinicians, and staff.
The acquisition marks a new phase of growth for HLSG as it partners with Sterling, which focuses on scaling industrial and service-oriented businesses. Sterling highlighted its operational approach and experience in expanding mission-critical services platforms as key drivers behind the investment.
York Private Equity, which previously owned HLSG, will continue its involvement as an investor. During its ownership period, York supported HLSG’s expansion through strategic investments and add-on acquisitions, positioning the company for continued growth.
Sterling indicated that it plans to leverage its operational improvement framework to scale and optimize HLSG’s platform, while benefiting from increasing demand for outsourced healthcare linen services.
Support: Advisors to the transaction included Stephens Inc., Latham & Watkins LLP, and Weil Gotshal & Manges LLP for Sterling, while BofA Securities, Cain Brothers, and Sidley Austin LLP advised HLSG.
KEY QUOTES:
“I would like to thank the team at York Private Equity for their collaboration and guidance over the last four years. The HLSG team is thrilled to partner with The Sterling Group as we enter our next phase of growth. Sterling’s experience scaling essential, mission-critical services businesses, commitment to employee ownership, and hands-on approach make the firm an ideal partner as we seek to expand our footprint and continue our mission of providing reliable, high-quality laundry and rental services to our valued customers.”
Joe LaPorta, CEO of Healthcare Linen Services Group
“We are proud of HLSG’s transformational growth via strategic investments and add on acquisitions during our partnership and are grateful to Joe and his team for their leadership and operational excellence. With a strong foundation in place, the company is poised to build on its momentum, and we are excited to be rolling and continuing as investors.”
Robbie Shapiro, Managing Director at York Private Equity
“HLSG is a differentiated platform with strong customer relationships and a reputation for exceptional service. We believe the company is well positioned to capitalize on continued growth in demand for outsourced healthcare linen services. Sterling looks forward to partnering with Joe and the entire HLSG team to scale and optimize the business through our tested Seven Levers operational improvement framework.”
Brad Staller, Partner at The Sterling Group
