Spotless has entered into a purchase agreement for Victorian linen and laundry business Cabrini Linen Service, with the acquisition set to double its laundry volumes across the state.
The acquisition includes a number of new multi-year 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.
Commenting on the acquisition Spotless CEO, Martin Sheppard said: “Spotless remains resolutely focused on the execution of its strategy reset, including the performance improvement initiatives identified for the laundries business.”
“The acquisition is consistent with our strategy reset and strengthens our leadership position in the healthcare market – a priority growth market for Spotless.”
Sheppard said the new long-term contract with Cabrini Hospital and other healthcare customers will immediately double its laundry volumes in Victoria
“Spotless is focussed 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,” Sheppard said.
The acquisition is expected to be completed by July 2017.