On 2 December 2020, Adamantem Capital Fund II was pleased to announce that they had come to an agreement to acquire Australia’s and New Zealand’s leading commercial laundry operator Spotless Laundries (“Linen Services Australia”), representing Adamantem Capital Fund II’s first investment for that fund.
Linen Services Australia is the leading commercial laundry operator in Australia and New Zealand, providing critical linen and garment services to ~3,500 customers. Linen Services Australia is a market leader in the provision of outsourced laundry services, a mature market which exhibits steady long-term growth. Spotless Laundries has the dominant share in healthcare linen, a highly attractive industry vertical, and longstanding, sticky relationships with its Tier 1 public and private hospital customers.
Adamantem is partnering with a highly experienced management team who will bring prior knowledge and operational experience, having each worked in senior roles at Spotless previously. Linen Services Australia was significantly impacted by COVID-19 related issues including infection of some staff at one of the sites, a reduction in private hospital elective surgery volumes and a decline in the hotel and airline customer volumes. However, in recent months the business has experienced a full recovery in hospital volumes to pre-COVID levels and a continued improvement in accommodation volumes.
