Spotless Acquires Cabrini Linen Service

Spotless Group Holdings Ltd., Melbourne, Victoria, Australia, recently entered into an agreement to purchase Cabrini Linen Service, a laundry business that has served the healthcare industry in Victoria for more than 20 years.

The acquisition includes a number of new multiyear healthcare laundry contracts, including an initial 10-year contract with Cabrini Hospital, and a state-of-the-art laundry facility in Melbourne’s eastern suburbs.

“Spotless remains resolutely focused on the execution of its strategy reset, including the performance improvement initiatives identified for the laundries business,” said Spotless CEO Martin Sheppard. “The acquisition is consistent with our strategy reset and strengthens our leadership position in the healthcare market – a priority growth market for Spotless. The new long-term contract with Cabrini Hospital and other healthcare customers will immediately double our laundry volumes in Victoria. Spotless is focused on growing our laundry volumes in Victoria – the state-of-the-art facility we are acquiring today will triple our capacity in Victoria and improve our operating efficiency.”

In the news release, Spotless noted that the acquisition will not affect its targeted $50 million reduction in net debt by June 30 and the company remains focused on its debt-reduction initiatives. The acquisition is expected to be completed by July 2017. To read the full release, click here.